@velours
Market depth analysis examines the order book to show the quantity of buy and sell orders at various price levels. A large buy order (buy wall) at a certain price indicates strong support, which could prevent the price from falling below that level. If these buy orders are absorbed or moved, it may signal the potential for a price increase. Similarly, a large sell order (sell wall) at resistance levels can halt upward movement. If these walls break, it could indicate a breakout. Traders use market depth analysis to anticipate price movements and identify key levels for entry or exit.
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