|
Title: On the meaning of "walls" and liquidity Post by: copumpkin on February 23, 2012, 01:48:23 AM I'm just wondering how people interpret market depth around here. Please comment to elaborate on your reasoning process, if you think it's of interest.
Edit: this isn't so much a question about "fake" walls that disappear if you tickle them. I'm just asking about walls that you can assume people actually intend to leave in place. Title: Re: On the meaning of "walls" and liquidity Post by: phorensic on February 23, 2012, 01:58:22 AM Who knows? I've seen 10,000 BTC walls flash in and out of the depth chart within seconds. It usually doesn't mean anything. Bots will be bottin'
Title: Re: On the meaning of "walls" and liquidity Post by: RyNinDaCleM on February 23, 2012, 02:06:36 AM Who knows?
I assess the situation to determine if said wall will halt movement. I look at volume, support, resistance beyond it, where we've been previously, how long it's been standing, a few others. Then I move on my decision. :) Title: Re: On the meaning of "walls" and liquidity Post by: byronbb on February 23, 2012, 02:25:42 AM One thing I notice that people seem to mis understand is that a wall is not necessarily resistance because it might actually be providing the needed liquidity at a certain price for someone who wants to buy/sell a large amount.
Title: Re: On the meaning of "walls" and liquidity Post by: bitcoinBull on February 23, 2012, 02:54:35 AM What's funny about walls is that while most people assume buy-walls are "fake", on the other hand, whenever an ask-wall appears they run for the hills.
Title: Re: On the meaning of "walls" and liquidity Post by: RyNinDaCleM on February 23, 2012, 03:04:29 AM What's funny about walls is that while most people assume buy-walls are "fake", on the other hand, whenever an ask-wall appears they run for the hills. This is due to the ingrained "need" for fiat. They would rather be stuck with over priced fiat rather than over priced BTC. ;) Title: Re: On the meaning of "walls" and liquidity Post by: stochastic on February 23, 2012, 04:20:01 AM What's funny about walls is that while most people assume buy-walls are "fake", on the other hand, whenever an ask-wall appears they run for the hills. This is due to the ingrained "need" for fiat. They would rather be stuck with over priced fiat rather than over priced BTC. ;) Loss aversion ( see Kahneman and Tversky, 2000. Choices, values and frames ) |