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?
I really don't like order book analysis. There are so many games being played, spoofing, and so on. I prefer to focus on price action.
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.
It depends on the exchange. Some also have full order books on a separate web page, like Bitfinex:
https://www.bitfinex.com/order_bookOthers, like Kucoin, don't. In those cases, you're stuck with the crappy truncated order book on the trading page.
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?
Possibly, but it's important to remember these orders can be removed at any time. I prefer to first identify support/resistance on the chart. Very high volume usually occurs at inflection points, so high volume wicking through resistance is usually a good sign of a top.