@fan42
Market depth analysis provides a visual representation of the order book, showing the number of buy and sell orders at different price levels. A large concentration of buy orders at support levels suggests strong demand, which can act as a springboard for a breakout if the price approaches and breaks through resistance levels. Conversely, a dense sell wall at resistance levels can signal strong selling pressure, making it harder for the price to move higher. By identifying these key levels, traders can predict where breakouts might occur and position themselves accordingly to capitalize on potential price movements.
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