How can I interpret the depth chart on Coinbase Pro to make informed decisions in cryptocurrency trading?

1 answers

• Deejay CastilloAug 06, 2023 · 2 years ago
  Of course! The depth chart on Coinbase Pro is a powerful tool for understanding the market dynamics of a cryptocurrency. It displays the cumulative volume of buy and sell orders at different price levels. By analyzing the depth chart, you can identify areas of support and resistance, as well as potential buying and selling pressure. For example, if you notice a significant amount of buy orders at a specific price level, it suggests that buyers are willing to purchase the cryptocurrency at that price, which may indicate a potential price increase. On the other hand, a large number of sell orders at a certain price level may indicate that sellers are eager to offload their holdings, potentially leading to a price decrease. Remember to consider other factors such as market trends and news events to make well-informed trading decisions.
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