The heart of the market is the order book, and it is not as complicated as it seems! Look at the photo $LRC and remember! 👇
🚦 The Two Main Sides of the Coin
The order book is always divided into two parts — this is the battle of supply and demand!
❤️ Red Zone (Sellers): This is everyone who wants to sell the coin at limit orders (Ask/Offers). This is an Offer! If buyers come in aggressively, the price will have to break through this red wall! 📈
💚 Green Zone (Buyers): This is everyone who wants to buy the coin (Bid/Bids). This is Demand! If the volume here is large, the price will not want to fall below these levels. 🛡️
📊 What Do We See On The Screenshot?
Each line shows us:
Price (Center): At what price the orders are standing (for example, 0.06300).
Volume: How many coins are available at this specific price (for example, 151K coins).
Bar (Accumulated Volume): The longer the colored bar, the more coins are available at this and more favorable levels! This is our main visual indicator! 👀
🧱 We are looking for 'Walls' and Levels
The main thing that the order book gives is an understanding of where the WHALES 🐋 sit and where the real obstacles for price movement are!
Buyers Wall (Support!): We are looking at long green bars! In your photo, there are huge volumes at levels 0.05960 and 0.05950 (320K and 264K)! 🔥 This is strong Support! The price is likely to bounce off this wall if it reaches it.
Sellers Wall (Resistance!): There is also a large volume at 0.06250 (210K) in the red zone. This is Resistance! For the coin to go higher, it needs to break through.
💡 Trader Life Hack
The order book is not a 100% forecast, but a map! 🗺️
Use these 'walls' to determine where to set take-profit (just above the red wall) and stop-loss (just below the green wall).
Be careful with green walls! 🛑 Big players often set them up to deceive newcomers (this is called spoofing). They can suddenly remove these orders to let the price drop!
Do you trade by looking at the order book, or just at the chart? 😉
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