Bitcoin Forum

Anyone else into trading off the depth chart?

I've been learning it and doing well. Look at short-term sentiment / momentum. Trade off it. Get out once small % gains have been made.

Do that over and over again, increasing your stack each time.

I learned it from these guys - everyone is happy to help out someone new: Voodoo Crypto Discord (https://discord.gg/nCmjwmQ)

Any questions, let me know!

deepth chart is only ilustration of order book. And as all experienced traders know order book shows only part of orders and looots of fake orders.

Fake walls to makes you move your order or to make you fill like this price will never go down/up
Part of orders - 1 trader willing to sell 100 btc of alt will put 100 btc sell wall. second will use bot that will add order by order only if previous was fulfilled stopping price but not making fud due to huge sell wall third will set limit sell order (if price will go 1 % above my "take profit price" then dump 10 btc into marker dumping price 2 %) after realising this order he will create another untill fulfilling those 100 btc.

Only first trader will show his intentions in order book (and he is one out of 10 who will do that. Whales are alwais trying to hide their intention. And when there are showing their big order in most cases its fake). Now you see that deepth chart is useless.

Alwais if you are earning ask yourself a question. Why? Because of new indicator or mayby because of fact that we are in small bull run on alts since last week and even blind monkey would earn?

Depth charts are illustration of order book - I agree. But once you adjust out all the walls I find it a useful indicator of when to stick in a trade and when to GTFO. They show future intensions.

Candles represent the past - I have been dar more successful using depth as an indicator than candles.

They show current intensions of makers that want to show their intention not future and also dont show even current intention of takers and those not willing to show their intention. So it shows like 20% of what is creating price and those 20% is manipulated as f... And its soo manipulated because deepth manipulation is easy, effective and FREE. There are not a lot of manipulations that are FREE. In bear market buy site is almost alwais bigger than sell what dasnt stops price. It just goes down eating those walls. You are earning out of this. Ok. Good for you. Question is if it will work in any market codition. I was like that few years ago too. Bolynger ... omg its soo easy to earn... buy sell profit... buy sell profit. After week market changed and i lost in few trades all profit. I change indicator and it was like that again and again. Now i know that all of them are useless. Rsi can be oversold for years. Bolynger can give buy singal just beafore dump trends are made to be broken in any time. When you see trend line it only show that currently we are in this trend and you fucked up months ago. It dasnt show anything else. Tommorow we can be out of it.

https://bitcointalk.org/index.php?topic=3692757.msg37796560#msg37796560

You can take a look at this discussion. This guy also say that TA works for him and he predicted 12k in july... while BTC in july was at 6.5k . TA and any other magic indicator work sometimes. Like coin toss... 50/50

Like deepth chart. It works on specyfic market condition while not beeing manipulated ~10% times.

If you are earning on this than continue. But if market will change dont blame yourself after fail trade. Dont do more and more fail trades with this strategy hoping to finally earn like you did beafore. Dont spend time on searching where was your mistake. You didnt made one. Market changed ... new whale came with his new strategy and its just not working for now. Because every indicator sometimes work sometimes not. Thats why they are useless.

I think this is very true. To be safe, you should assume that only the first bids and asks are genuine (maybe also second as well). All the others are probably fake orders, and even if they are not, you had better think that way. But you can learn a lot just by looking at the order book and its evolution in time. Just spend a couple of hours looking at it, identifying bid walls, number of orders, bidding pressure, and supply and demand runs. It may give you a good indication of the market.

What if the the majority of fake trade intention is on coins that have less than "x" amount of btc on the order books?  A smaller amount of btc on the books would make manipulations easier, but wouldn't having like 100 btc or so between the buy/sell books show a more organic intention? 

I'm just learning about trading and everything I've read and listened to on podcasts is to look into everything and try to learn as much as possible, depth chart analysis with high volume, high btc order book coins could work, no?

I agree. If you stick to high volume coins with stacked orderbooks you should be able to take advantage of strong indicators in the depth chart. With more market participants it will be harder to spoof the price. There will always be whales to look out for. My question is, how can you even be aware of whale activity without watching the depth chart? Candles will only show you after the fact.

Is it really called depth chart?

I call it for myself as a history chart. It is all history for me. I find no clue out there that will provide for winning the trade.
I mean anything is possible right?

Maybe for short term profit it would work but there is still that risk.
There is no perfect trade. There are times we just get lucky or our patience will be fruitful.

Small short term profits is what this technique is all about. If you can manage to make 2-3% profit each day off a few trades, compound interest will be your best friend.
There is risk with all trading, you have to learn to manage that risk

Interested in why you count a depth chart (or order book) as historical? It only gives future indications in my mind.

I also agree with you. those who make orders are bots, and it is fake not human, so this is not original, order in the listing book on the market

I think that in order to be able to successfully trade the day, you need to analyze the technique accurately and look at all the time frames from the big time frame to the small time frame, to get the most accurate view. You can see that the market is constantly decreasing so that when the transaction needs to always observe bitcoin prices.

This is totally off topic. Depth chart trading has nothing particular in common with hyper deflationary coins or tokens.

If the depth charts are constantly updated (within hours), then the fake walls can be spotted more easily and one can react with more confidence on their day trades.

Yes getting off when you see a small % rise on the price is a good idea. But with your ambition to earn bigger, you should have to be patient to wait for a bigger % hike even if it will take long. Short term trading is goo when you don't have the ambition to have a bigger profit.

Wouldn't several small gains, using a compound interest system to grow your stack exponentially work better and ultimately quicker than waiting for the big ones?
Like below, if you make 5 trades in a day at 1% after each trade.  Especially if you've got a smaller stack to begin with?

Start = .025 BTC
1% after fees profit each trade.
.0252500
.0255025
.0257573
.0260151
.0262751

Is about 5.1% for the day. Also assume that any loss on a trade is limited to 1%.

How many times do bigger swing trades take place and for what percent?