@cddee
Market depth analysis reveals the order book, showing the distribution of buy and sell orders. A large concentration of buy orders at a specific price level indicates strong support, while a high concentration of sell orders suggests resistance. When the price approaches these levels, a breakout can occur if the buy or sell orders are absorbed. Monitoring the size and movement of these orders helps traders spot potential breakout points and anticipate price movements, allowing them to position themselves effectively before significant price changes happen.
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