Hi,
I am sort of new to trading. I have been into crypto currencies for quite a few years but I haven't actively traded. I find it quite fascinating and interesting to analyse the charts and figure out patterns. Once the patterns are figured out, it is fun to realize that the market is predictable to an extent.
One of the things which I would like to understand really well is how to analyze the order books on the exchange and what should I infer from them? Are they an indicator of price, resistance and support levels?
Here is what I do at present:
1. On any one exchange, I check the Sell and Buy Order books. My first question here is, these sell and buy order books move so fast that it is difficult to look at them and analyze in real time. Is there another way to do it? The rows keep moving up and down as and when the orders get executed.
2. Sometimes, I see the Sell order book moving much faster than the buy order book and this is usually at the time when the market is going down. So, I think this is self explanatory.
3. I see a few big sell orders at a certain price X which is Y% greater than the current price. Does that indicate a high resistance level at the price X? Can I expect the market to go down once it reaches the price X if there are a lot of sell orders at that price? Is there a better way to analyze?
4. I sometimes check the Trade History on the Exchange and I can see more Sell orders than Buy orders (or vice versa) at any given instant. But this kind of analysis is not fruitful since it is manual and also a bit vague.
I think it would be great if I could chat with someone in real time who is an experienced trader just to understand all this better. If you would be willing to chat and discuss, please send me a private message
I am sort of new to trading. I have been into crypto currencies for quite a few years but I haven't actively traded. I find it quite fascinating and interesting to analyse the charts and figure out patterns. Once the patterns are figured out, it is fun to realize that the market is predictable to an extent.
One of the things which I would like to understand really well is how to analyze the order books on the exchange and what should I infer from them? Are they an indicator of price, resistance and support levels?
Here is what I do at present:
1. On any one exchange, I check the Sell and Buy Order books. My first question here is, these sell and buy order books move so fast that it is difficult to look at them and analyze in real time. Is there another way to do it? The rows keep moving up and down as and when the orders get executed.
2. Sometimes, I see the Sell order book moving much faster than the buy order book and this is usually at the time when the market is going down. So, I think this is self explanatory.
3. I see a few big sell orders at a certain price X which is Y% greater than the current price. Does that indicate a high resistance level at the price X? Can I expect the market to go down once it reaches the price X if there are a lot of sell orders at that price? Is there a better way to analyze?
4. I sometimes check the Trade History on the Exchange and I can see more Sell orders than Buy orders (or vice versa) at any given instant. But this kind of analysis is not fruitful since it is manual and also a bit vague.
I think it would be great if I could chat with someone in real time who is an experienced trader just to understand all this better. If you would be willing to chat and discuss, please send me a private message