$BTC #DepthOfMarket #AlgorithmicTrading #SmartTrading #DOMAnalysis #NextGenTrading Introduction: Why be interested in the order book (DOM)?
Most traders scrutinize price charts, moving averages, and even a few classic technical indicators… But how many actually take the time to analyze the order book (Depth of Market, or DOM)?
Yet this is where it all begins: every price movement results from an imbalance between supply and demand in this order book. If an aggressive buyer decides to take all the sell orders at a given level, the price goes up. If, on the contrary, massive selling pressure absorbs the buyers, the price falls.