/biz/ - Business & Finance

>>21514779
Sure thing, m8.

Take a look at this picture. The usefulness of this data is pretty dependent. There's two useful things about the order book:

1. The price distribution
2. The volume

For instance, in the first example, the price distribution is very tight at 0.0001 and things will be changing at a pace that makes it hard to comprehend.

The second column is much more useful. It shows you that if you're hoping for the price to raise to $0.7450, there's a big chunk of volume that needs to be chewed through at $0.7430. It's smooth sailing to $0.7560 if we can break through $0.7430, but that's a big if.

The third column is kind of useful for making long term predictions. You might wonder, "How fast can this jump from $0.750 to $1.000?" Well, as fast as we can buy our way through ~7-8m tokens. That's a lot of resistance IMO.

I've been talking a lot about the sell orders on top, but the other reassurance is the buy orders on the bottom. How fast can you lose money on this? Will it drop from $0.7250 to $0.6000? Well, not until it chews through 3m coins.

Honestly, the market can move VERY fast when it wants to be, but this can help you make good decisions by seeing how fast each side of the line is changing. If sell orders are dropping fast and buy orders aren't budging... YOU'RE GOING UP!

If sell orders are holding steady and they're nowhere near a breakpoint... Get the fuck out.