When does market depth become a reliable indicator of market intention?

[cafucafucafu]

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?

[H.W.Z]

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

[fastBeast]

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