Understanding encryption orders can provide your next trade

If you have traded in traditional futures markets such as ES or NQ, you may have noticed that you can only see a few levels of the request book and often have to pay a large amount to reach the full depth.
Worse, products like Spot Forex and other CFDs do not offer a visual orders because they are traded via the meter (OTC).
However, when it comes to encryption, things are different.
One of the main advantages of cryptocurrencies is the transparency of data; Seeing the depth of the full market for all products is standard.
Although this data is useful, many merchants are guessing with groups of numbers that have appeared on the screen. Even if they can understand how to read the request book, they often fall to deception and end up on the wrong side of the trade completely.
In this article, you will learn everything you need to know about request books, how to read them, what web sites should be used and how to use them in your circulation.
What is the request book
The request book, which is sometimes called the depth of the market or DOM, shows us comfort -limiting orders.
Tames are also called negative arrangement, liquidity, or makers’ orders.
The image above shows us the instant request book for BTCUSDT and Ethusdt on Woo.
The numbers inside the bid column with a blue background show our offers ready to buy, and the numbers inside the ASK column with a red background that appears to us (also called offers) ready for sale.
You may also be aware of Heatmaps, which are exactly the same request book but depicted directly on a scheme in different colors based on the severity of the demand.
As a person who originally came to trading encryption from the background of the old markets, I have always seen the request book information as applicable only in very low time frames and shines due to a large amount of deception.
For those of you who do not know, deception means submitting applications in the application book without being filled at all; This mostly happens to contact other participants in the market.
What I realized is that things are completely different in the coded currency space, and request books can be used often even in the higher time frames. Participants in the large market often do not care about preparing their orders, perhaps because the “medium encryption trader” does not care about this information at all.
As you can see in the photo below, the big show in Solana was left for several hours before its fullness, creating a strong bounce inside the day.
Later, I will show you the easy way you can check if the request is already occupied or not.
Books of a spot photographic for futures contracts
When it comes to trading encrypted currencies, you have two options: you can either trade derivatives (permanent future contracts), or you can trade somewhere.
The differences are clear and direct: If you exchange a spot, you can only buy to possess the basic origin and sell it to the cash (stablecoins); With derivatives, you can speculate on price movements that are walking both long and short and use the leverage.
Futures are the choice of “retail merchant”.
If you think Bitcoin is about to move from $ 60,000 to $ 65,000 and want to buy 1 BTC to make $ 5,000 if this step occurs, you will need $ 60,000 on the stock exchange to buy 1 BTC.
For the future, this will be much cheaper as you can use the leverage, and the margin requirements will be significantly lower.
Although future contracts’ orders can sometimes provide useful information, the outpatient order notebook is often well filled by market makers who provide liquidity instead of trying to express any bias in the direction.
In the instant request book, we find senior players with sufficient capital to influence price movements.
The two examples above show the BTCUSDT Spot (TOP) and BTCUSDT PERPTUAL FUTUBUAL COK (bottom).
The graph is also filtered only to show great high requests.
You can quickly notice that in the instant request book, large requests appeared only in the areas of decent price shifting points compared to the book of futures orders, which were prepared with large orders on both sides above the price and less than that all the time.
This is a classic market -making example (liquidity saving).
Use the request book as an indicator of order and order
While examining individual price points in the request book as support and resistance levels can be useful, individual requests are often failing to provide a complete image and can be misleading.
Request books will be used better by simply taking a look at the Delta defect inside the request book.
For those of you who do not have any idea of an imbalance in Delta, it is just a difference between the orders available for purchase and the orders available for sale.
If you have a request book with 100 BTC rest on the offer side (for purchase) and 70 BTC rest on the Ask side (for sale), the delta in this case will be 30 (100-70).
Below, you will see the example of the actual request book.
You can see that in this case, the request book is somewhat balanced, with a negative delta of 3.1BTC (about 150,000 dollars).
Fortunately, we do not have to look at the changing applications book constantly and try to calculate the difference ourselves; Many platforms will do this for us and draw the depth of the Delta Applications Book as an oscillator.
Tradingliteand MobchartTrdr.io is the few that can display the application book.
I have no affiliation with either of them (besides the use of the RFF link infiltrated in URL in the previous sentence), but they are all wonderful and have features.
Since you will need a distinct subscription to access the data book depth, I recommend TRDR.IO because it is the only platform with the depth of the collected request book, although MobBChart has the largest group of metal and commercial currencies that have the most total features.
I will complete the ranted from the basic systems and settings at the end of the article.
As I mentioned, we do not care about certain levels of prices, but rather the major differences in the delta between buyers and sellers when using the application book depth.
The image above shows the price reactions on BTC once you exceed the request book or less than 50 million dollars; As you can see, every time there was a distinguished demand for the offer or supply on the offer, the price follows the direction.
This example is only from the last two weeks of bitcoin price, but as I mentioned before, the depth of the request book can also be used in the higher time frames.
Below, you will see BTC on a daily time frame and price interactions when the Delta daten in the request book was higher or less than $ 150 million with a depth of less than 10 % of the market price.
Compared to traditional indicators such as RSI, which clearly placed boundaries for the “peak/sale” areas, the depth of the request book shows the current delta. What you see high or low is your estimated decision.
For this reason, it is worth spending time in testing reactions in the previous prices in different markets.
Improving implementation using the application book depth
The depth of the request book is not a classic indicator; It does not tell you when to buy or sell.
It simply tells you what if immediate traders (often heavier hands) are interested in buying or selling.
Immediate traders are often more impatient than those who trade in futures contracts; For this reason, immediate books can be largely deviant on one side for a much longer period before the medium retention step occurs.
As you can see on the graph above, Sol O order books were very deviant on the sale side, but Solana is still 7 % higher before the sale at the end.
It would be better if you are considering using the depth of the request book more as an indicator of meeting within your system, which will help you stay on the same side of the big market participants and give you a greater conviction in your trading.
On my Twitter, I recently made a full commercial detail, using the depth of the request book as a meeting of my comprehensive commercial idea; You can find the entire topic here.
Platforms depth of requests book
To display the depth of the request book, you need to use a specific platform.
There are a few, but I will include the three that I found the most useful for different reasons.
I have no affiliation with any of these platforms, and it may come with additional monthly subscriptions.
Tradr.io
This is my favorite because it provides a variety of settings, and most importantly, it collects data from many exchanges; Therefore, you will get a full picture of what is going on.
The small defect of TDR.IO is that it is very slow to include any new metal coins, so you may not find that you are favorite there.
When it comes to the settings, you want to make sure that the market types have been set immediately and smaller than the preparation is 1 % or 2.5 % for trading/daily trading band, 5 % for swinging within the week, and 10 % for the swing trading of the highest time.
Mobchart
Mobchart is also great. They do not have collected extracts, because they only provide Binance and Bybit, but a variety of coins and the difference that has a lot of supply will show great limit orders in all markets.
Coinglass
Coinglass is the only one that is free and a good starting point if you do not want to pay the price of any subscriptions.
They also have an assembled nutrition, but unfortunately, the index will not show you the closer 1 % of the market price; Therefore, it will only be useful for a very fast chick.
conclusion
Using the depth of the request book in your trading is a great tool to gain additional convergence of any trading system that develops around the use of price movement or indicators.
Obviously, nothing works every time, but it is usually useful to be on the same side of the market as immediate traders.