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Author Topic: When does market depth become a reliable indicator of market intention?  (Read 1001 times)
cafucafucafu
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November 10, 2014, 03:25:03 PM
 #1

I have seen how some people gauge the market intention by looking at the market depth on exchanges. However at what zoom level does this become reliable. By zoom level I mean the price distance away from the last price. Right now on Bitstamp at +$10 and -$10, the asks are more than the bids. At $+50 and -$50, the bids are more than the asks.

From this how do we know what the overall market feeling is?


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H.W.Z
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November 11, 2014, 08:41:33 AM
 #2

We can call it market sentiment. Some indications could be used, such as trading volume, and the one you suggested.

fastBeast
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November 11, 2014, 09:45:47 AM
 #3

you can use rsi too...
ove 80 market sentiment is elated
under 20 is oversold...
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