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Depth Chart - Learn how to assess instant supply and demand before buying or selling
The law of supply and demand is universal and applies to all sectors of activity. If demand is greater than supply, the price will certainly rise. And if demand is less than supply, the price will fall.
So tell me? How have you been buying and selling until now without first analyzing instant supply and demand?
In this post, you will learn how to do this prior analysis using the depth chart. On the left side, in green, is the volume corresponding to demand, calculated based on the number of purchase orders issued by users. On the right side, in red, is the volume of offers, calculated based on sell orders.
In a market with an upward trend, the green area needs to be much larger than the red area, indicating greater strength of the buffaloes (buyers) than of the bears (sellers).
In a market that is declining, the red area is much larger than the green area, indicating that the bears are in control.
Of course, in a balanced and indecisive market, the green and red areas will be equivalent. In this case, it is better to stay out!
The steps formed on the green side indicate possible support values, and the steps on the red side indicate resistance values.
Did you like it? I am attaching the charts of $LTC, $HBAR and $DF. Try to identify the three types of markets: bearish, bullish and neutral.
To activate the tool, click on Depth in the chart display.
Greetings from Crypto_Focuses
The law of supply and demand is universal and applies to all sectors of activity. If demand is greater than supply, the price will certainly rise. And if demand is less than supply, the price will fall.
So tell me? How have you been buying and selling until now without first analyzing instant supply and demand?
In this post, you will learn how to do this prior analysis using the depth chart. On the left side, in green, is the volume corresponding to demand, calculated based on the number of purchase orders issued by users. On the right side, in red, is the volume of offers, calculated based on sell orders.
In a market with an upward trend, the green area needs to be much larger than the red area, indicating greater strength of the buffaloes (buyers) than of the bears (sellers).
In a market that is declining, the red area is much larger than the green area, indicating that the bears are in control.
Of course, in a balanced and indecisive market, the green and red areas will be equivalent. In this case, it is better to stay out!
The steps formed on the green side indicate possible support values, and the steps on the red side indicate resistance values.
Did you like it? I am attaching the charts of $LTC, $HBAR and $DF. Try to identify the three types of markets: bearish, bullish and neutral.
To activate the tool, click on Depth in the chart display.
Greetings from Crypto_Focuses
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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