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How can I effectively read the depth chart on Coinbase?

avatarMichiko RuDec 26, 2021 · 3 years ago1 answers

Can you provide some tips on how to effectively read the depth chart on Coinbase? I'm new to trading and would like to understand how to interpret the information displayed on the depth chart.

How can I effectively read the depth chart on Coinbase?

1 answers

  • avatarDec 26, 2021 · 3 years ago
    When it comes to reading the depth chart on Coinbase, there are a few key things to keep in mind. First, pay attention to the price levels where there is a significant concentration of buy or sell orders. These are known as support and resistance levels and can indicate areas where the price is likely to bounce or reverse. Second, look for any sudden changes in the depth chart, such as a large influx of buy or sell orders. This could be a sign of market manipulation or a significant shift in market sentiment. Finally, remember that the depth chart is just one piece of the puzzle. It's important to consider other factors, such as news events and technical analysis, when making trading decisions. Happy trading!