Lesson 8: How to Use the Order Book in Futures Trading 📖📊
If you’re trading without watching the order book, you’re missing the live heartbeat of the market ❤️📉📈
Let’s learn how to read it and use it to your advantage like real pros do 👇
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What Is the Order Book? 📚
The order book shows real-time buy & sell orders from other traders.
You’ll see two sides:
Bids (Buyers) 💚 – People wanting to buy at lower prices
Asks (Sellers) ❤️ – People wanting to sell at higher prices
In the middle is the market price — where deals are actually happening. 🔁
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Key Terms 🔍
Bid Price = Highest price buyers are willing to pay
Ask Price = Lowest price sellers are willing to accept
Spread = Gap between bid & ask (tight spread = active market)
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How to Use It ✅
1. Spot Liquidity Zones 💦
If you see big walls (huge amounts) on either side, price might bounce or stall there.
2. Watch for Spoofing & Fake Walls 🕵️♂️
Some big players place fake orders to trick retail traders. Be alert 👀
3. Gauge Momentum 🔥
If buy orders keep increasing and eating ask levels — bulls are in control. If sell pressure dominates — bears are pushing.
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Pro Tip 🧠
Use the order book with charts, not alone. Combine it with price action or support/resistance for better entries.
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This tool shows the real-time battle between bulls and bears. Master it, and you’ll always stay one step ahead 🥷📊
Next up: Lesson 9 — What Are Market, Limit & Stop Orders (And When to Use Them) 🎯⚙️
