Order Flow Getting Started Tutorial
Large-amount entrusted orders (main orders)
Liquidation Heatmap
Liquidation Map
Basic introduction to order flow
What is order flow?
Order Flow Getting Started Tutorial
Order flow
What is the long-short position accounts ratio?
Manual of contract data for newer
Risk management in contract trading
Commonly used indicators for contract data
Costs in cryptocurrency trading
What positive or negative funding rates means?
Arbitrage opportunities in the cryptocurrency market
What are terms mark price、last price and estimated liquidation price?
What determined funding rate?
Basis and premium
Liquidation and delivery
What are USDT contract and USD contract?
What difference between open interest and trading volume?
Differences between cryptocurrency perpetual contract trading and leverage trading
How to keep balance for price in perpetual contracts and spot?
What categories of cryptocurrency derivatives?
What are Golden Cross and Death Cross, and how are they used in trading?
What is liquidity
What is VWAP indicator and how to use it in cryptocurrency trading?
What is the RSI indicator, how to see overbought and oversold?
How to Read Order Book Data?
The Analysis and Trading Applications of Long-Short Position Ratio and Open Interest
The Significance and Application of Cryptocurrency Liquidation Data
How is funding rate calculated for cryptocurrency perpetual contracts?
How to interpret the open interest data of cryptocurrency contracts?
What is the purpose of the cryptocurrency funding rate?
What is Top trader account long/short ratio
What is exchange top trader positions long/short ratio
What is Bitcoin open interest?
What is perpetual contract funding rate?
What is BTC liquidation or what is cryptocurrency liquidation?

How to Read Order Book Data?

When looking at order book data, which refers to the collection of buy and sell orders on an exchange, you can use the following methods:

  1. Observe price levels: The order book typically displays buy and sell orders grouped by price levels. By observing the order book, you can understand the buying and selling activity at different price ranges.
  2. Determine support and resistance levels: The order book can help identify support and resistance levels in the market. Support levels are areas with a higher volume of buy orders, which may provide support for price declines. Resistance levels, on the other hand, are areas with a higher volume of sell orders, which may create resistance against price increases. By observing the buy and sell order volumes in the order book, you can identify potential support and resistance levels.
  3. Analyze market depth: Order book data provides information about the depth of the market, indicating the volume of orders at different price levels. If a specific price level has a significant order volume, it suggests a higher market depth, reflecting increased market activity and liquidity.
  4. Track order changes: The order book is dynamic, with order volumes changing as market conditions evolve. By continuously monitoring changes in the order book data, you can observe fluctuations in buy and sell order volumes, gaining insights into market participants' buying and selling intentions and changes in market trends.

It's important to note that order book data is just one indicator for market analysis and should be used in conjunction with other technical analysis tools and market factors. Additionally, order book data is real-time and can be crucial for high-frequency trading and rapidly changing markets.

Information content does not constitute investment advice, investors should make independent decisions and bear their own risks