FAQ
Introduction
1. Concept: CoinW’s market depth chart visualizes order book data. Unlike candlestick charts, which show past price movements, the depth chart reflects current market conditions and near-term supply and demand. It helps you clearly understand whether there are more buyers or sellers in the market, and where large orders are concentrated.
2. Key Components
The depth chart consists of an X-axis, a Y-axis, and two colored areas:
X-axis: Represent price, increasing from left to right.
Y-axis: Represents cumulative order volume (total pending orders),
Green area (bid): Represents buy orders. As buyers are usually more active at lower prices, the green area rises from right to left.
Red area (ask): Represents sell orders. As sellers are usually more active at higher prices, the red area rises from left to right.
Middle gap: The point where the green and red areas meet represents the current market price. The empty space between them is the spread.
3. What You Can Learn from the Depth Chart
Market sentiment (buy vs. sell pressure)
If the green area is larger than the red area, it indicates stronger buying pressure, and a potential upward price movement.
If the red area is larger than the green area, it indicates stronger selling pressure, and a potential downward price movement.
Introduction
1. Concept: CoinW’s market depth chart visualizes order book data. Unlike candlestick charts, which show past price movements, the depth chart reflects current market conditions and near-term supply and demand. It helps you clearly understand whether there are more buyers or sellers in the market, and where large orders are concentrated.
2. Key Components
The depth chart consists of an X-axis, a Y-axis, and two colored areas:
X-axis: Represent price, increasing from left to right.
Y-axis: Represents cumulative order volume (total pending orders),
Green area (bid): Represents buy orders. As buyers are usually more active at lower prices, the green area rises from right to left.
Red area (ask): Represents sell orders. As sellers are usually more active at higher prices, the red area rises from left to right.
Middle gap: The point where the green and red areas meet represents the current market price. The empty space between them is the spread.
3. What You Can Learn from the Depth Chart
Market sentiment (buy vs. sell pressure)
If the green area is larger than the red area, it indicates stronger buying pressure, and a potential upward price movement.
If the red area is larger than the green area, it indicates stronger selling pressure, and a potential downward price movement.