Are there any tips or tricks for understanding the GDAX depth chart better?

1 answers

• Kruse EllegaardJan 05, 2023 · 3 years ago
  Certainly! The GDAX depth chart can be a bit overwhelming for beginners, but with some guidance, you'll be able to navigate it like a pro. One tip is to use the depth chart to identify key support and resistance levels. These are price levels where there is a significant concentration of buy or sell orders. By paying attention to these levels, you can anticipate potential price movements and adjust your trading strategy accordingly. Another trick is to use the depth chart to gauge market liquidity. If you see thin order books with large gaps between buy and sell walls, it indicates low liquidity and higher volatility. On the other hand, thick order books with tight bid-ask spreads suggest higher liquidity and more stable price movements. Remember, practice and observation are key to mastering the depth chart.
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