📘 How to read the order book step by step?
Imagine you are looking at the order book on Binance... you will see two sections:
🔴 Upper section: Sell orders (requests)
These are the people who want to sell the currency now
Each line contains:
The required selling price – quantity – total in dollars
Prices are arranged from lowest to highest (bottom to top)
🔍 Example:
2.1150 | 5,000 XRP | $10,575
2.1160 | 10,000 XRP | $21,160
→ This means there are people willing to sell at these prices
🟢 Lower section: Buy orders (offers)
These are the people who want to buy the currency
Each line contains:
The offered price to buy – quantity – total in dollars
Prices are arranged from highest to lowest (top to bottom)
🔍 Example:
2.1140 | 8,000 XRP | $16,912
2.1130 | 12,000 XRP | $25,356
→ This means there are people placing ready buy orders at these prices
🧠 How can you benefit as an analyst or trader?
✅ Step 1: Watch for large barriers
Is there a huge quantity at a certain price? This is called a support or resistance barrier
Buy barrier = Strong support (people buying heavily at a certain price)
Sell barrier = Resistance (people selling heavily at a certain price)
✅ Step 2: Monitor rapid changes
Did a buy barrier disappear suddenly? The market may decline
Did a sell barrier appear suddenly? Distribution might happen soon
✅ Step 3: Read the balance
If buy orders are more = Buying pressure → Likelihood of rise
If sell orders are more = Selling pressure → Likelihood of decline
🛡️ Important reminder:
📌 The order book only reflects the current moment
📌 Whales can deceive people with fake orders (manipulation)
📌 Use it with technical analysis, and do not rely on it alone
The numbers in the examples are not necessarily accurate, they are just numbers to illustrate the examples
