Order Book Spread, A Support and Resistence Story
Can the order book tell us future entry/exit points?
Roses are red, violets are blue. This is not financial advice, I genuinely have no clue.
What am I looking at?
The left graph shows the order book of a cryptocurrency listed on Binance. The x axis shows the cumaltive quantity of the asset and the y axis shows the price. This is also reflected over the price vs time on the right graph. The purple shows stronger supports/resistence, the yellow shows relatively lower buying/selling volumes.
How is this useful?
This could be seen as an indicator into strong supports and resistances, for immediate or near future price entry.
