How can I use the depth chart on Coinbase Pro to make better trading decisions?

1 answers

• Dec 17, 2021 · 3 years ago
  As an expert at BYDFi, I can tell you that the depth chart on Coinbase Pro is a valuable tool for making informed trading decisions. It provides a visual representation of the buy and sell orders at different price levels, allowing you to see the market depth and liquidity. By analyzing the depth chart, you can identify areas of strong support and resistance, as well as potential buying or selling opportunities. Pay attention to the order book and look for areas where there is a significant amount of buy or sell orders. These areas can indicate strong support or resistance levels. Additionally, you can use the depth chart to gauge market sentiment. If there is a large amount of buying pressure at a certain price level, it may indicate bullish sentiment. On the other hand, if there is a significant amount of selling pressure, it may indicate bearish sentiment. However, it's important to note that the depth chart is just one tool in your trading toolbox. It should be used in conjunction with other technical and fundamental analysis techniques to make well-informed trading decisions.
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