Depth chart explained | Order book visualized

[@deeplizard]

Related vids: Front running explained | Million dollar front runner - kzbin.info/www/bejne/nYnSnHxnjJ2En5o What is an order book? - kzbin.info/www/bejne/q2q1enRnqrqVd9U Order book | What you need to know - kzbin.info/www/bejne/nIm9q5-fnKugh5o

[@XOPOIIIO]

Can you explain, why it exists only on cryptocurrency markets? Why I can't see on ordinary stock markets?

[@deeplizard]

Hey OK - In ordinary stock markets the quotes we see on the order book are called level 2 quotes. Displaying the order book using a depth chart just depends on how the broker decides to do it. Here is a wiki: en.wikipedia.org/wiki/Financial_quote

[@XOPOIIIO]

deeplizard, "depends on how the broker decides to do it" - but no one desided to do it. Only cryptomarkets have these depth charts.

[@deeplizard]

I see what you are getting at now. In general, it's just a visualization. I don't have an answer for that. Good question.

[@travistidwell6734]

Those 2021 gains

[@Addressforwarded]

That was probably the most clear and concise video I’ve watched on KZbin. Thank you.

[@TepsiMorphic]

Damn, as a math grad student, i did not expect to hear mathematical terminology! Thank you for the video.

[@froggyjosh]

Wow, your tutorials are really well made. Extremely clear and well executed. Thanks!

[@sourabh71083]

This is incredibly. Wish I had watched this 3 years ago when it came out.

[@dilosilv611]

I wish I watched this a year ago when you made this comment.

[@rogeliofontanilla6331]

The first time to hear and learn clearly about depth chart. Thank you.

[@deeplizard]

Hey Rogelio - You are welcome!

[@mezenkima3]

Bro, i've been looking for someone like you and finally found what i need. All your videos are spot on.

[@zipshot]

By far the best video I've seen that explains this concept, and the one I recommend to everyone who is trying to learn. Thank you for this!

[@uctopgulumvardi]

Best tutorial for this on youtube. Great! Thank you very much!

[@Moonz-]

This is a amazing video! thanks!

[@aaronbell5994]

Turning the chart visually upside down was a good effect!

[@veag687]

Everlasting fantastic explanation

[@bermentcamille2801]

Man I am running through your Coinbase Pro series. Honestly you did a great job. I am refering this playlist to all new crypto traders I get to meet. I think you should refresh those videos (if you have time). I think cryptos are gonna be hot again in the next few months. You could capture a lot of new audience.

[@allthingsparamedic]

this aged well

[@robertbradley8169]

Great information! Thank you.

[@saideeplall]

Exceptionally explained

[@aaronbell5994]

13:17 excellent transition!

[@rewolfer]

So the vertical value at a point on the buy side (for example) is the size waiting to be bought at or above the price (the horizontal value at the point). And vice versa for sell side.

[@nprado664]

best video about depth chart. Thanks from Brazil

[@kamallotus5456]

Oh Man you helped me so much understand this complicated stuff. Thank you so much 🗠👏👏

[@followheart3134]

this is the best explnantion ever, and I'm not an English speaker but I can catch up with your narrative.

[@deeplizard]

Glad to hear it! Thank you!

[@__OL__]

Nice vid, but I don't see how the price would move in a hypothetical situation where all the takers were frozen. Let's say the BTC price is $8K and the US suddenly announces that BTC is illegal. The limit buy orders would retreat from $7,999.99 all the way down to, say, $4K. Meanwhile, the limit sell orders, though they might like to move down, cannot, as GDAX does not allow you to place a limit sell order below current price. So the order book/depth chart would look drastically different after the announcement, but the price would not drop until the takers were unfrozen and one of them decided to go ahead and sell some BTC at that new limit buy amount of $4k. In other words, my understanding is that the price cannot move unless/until a taker buys/sells at a higher/lower price than the current. Anyway, curious to hear your response and looking forward to watching your Front Running vid. Thanks.

[@deeplizard]

Hey 444 - Great thoughts here! Here are a couple of things: - _GDAX does not allow you to place a limit sell order below current price_ GDAX *will* allow us to place a sell side limit order at or below the highest bidding price if and only if “post only” is *not* selected. The “will this sell order be a taker” check performed by GDAX looks at the sell order’s limit price vs the highest bidding price on the book. This means that in the hypothetical, the sell side limit orders will be able to follow the buy side limit orders lower. More info on this here: kzbin.info/www/bejne/mmqnZX6DebVnq6s - _my understanding is that the price cannot move unless/until a taker buys/sells at a higher/lower price than the current_ This is correct for the last trade price, but not for the so called “market price” which is given by the orders on the book. More info on this here: kzbin.info/www/bejne/ZnbQemqsrM10n7M Hope this helps. Let me know if adds up now. & Great! Also let me know what you think about the front running vid!

[@harshtigga7596]

before screen shot was invented...... "i killed my internet to stop the chart"

[@Nikitafrom233]

Thanks for explanations

[@picsalino]

Excellent explanations. Thank you !

[@deeplizard]

You are welcome!

[@aaronbell5994]

I understand depth charts now!

[@cfsouthern]

Great value. Easy to understand. Thanks!

[@920PC]

I like the sound effect when a new page came in around the 3:47

[@matthewgross4068]

Wow. This. Amazing explanation. You are doing God's work.

[@dactoanho6026]

thank you, the video explains very well

[@1lowtrade]

GREAT VIDEO, you take your time and explain everything. Unlike others who mumble alot and move their mouse cursor all over the screen and shit

[@zonachi]

So at the end of the day is the orderbook really helpful in taking decisions while trading?

[@prestonknott4708]

One of the best imformational videos ive seen good job man helped alot!

[@deeplizard]

Preston - Thank you! Glad to hear it helped!

[@andypasha7552]

Thanks for the clear explanation.

[@predatortiger1]

Simply you are awesome........ And beyond awesomeness 😍

[@deeplizard]

Thank you so much 😀

[@predatortiger1]

Can you bro talk about each indicators ... And fundamental analysis .... I ask that because your work is priceless

[@pookie8856]

Gettin deep in depth, with depth charts with deeplizard

[@deeplizard]

Haha. Very appropriate! Thanks Adam!

[@anewromanempirebeatstars]

This chart is in my opinion one of the most essential and overlooked of charts. Learn to read this and you will aways catch the bottom lows and know the instant a drop from peak is incoming.

[@mukherjeeaveek]

The best video in this topic! Thanks a ton!

[@deeplizard]

You're welcome Aveek. Appreciate that!

[@corymc92]

would be cool to see a 3D depth chart.

[@andys9155]

It can be done, If someone smart enough could figure it out, they would do it with procedural modeling software.

[@linuxd]

Thank you so much

[@jpt2259]

Thank you for the clear explanation. Although I really would’ve enjoyed seeing different types of depth charts showing the difference between a good time to sell and a good time to buy.

[@JunkBondTrader]

You can use this information for that. But there are other tools better for that. And by better, I mean, completely fucking useless lol. There's no magic tool. There's barely even helpful tools in crypto. Use stoch RSI. A slightly lagging indicator that gives better sentiment on momentum than any other indicator, just be careful for false signals. Again, it's not magic.

[@RVDB-nz9gu]

Man, you definitely deserve more subs. Excellent work!

[@deeplizard]

Hey R. VDB - I appreciate that. Thank you!

[@idc20627]

I've only gotten to the 9th minute. but my question is more for my understanding. All takers are essentially mostly market orders and not all but most limit orders are makers. Takers usually take from the order book at market price and it fills in immediately as opposed to makers setting stop-loss orders and limit orders at different prices for profits or cutting losses making them makers in the order book. Therefore potentially you can have two makers meet where one sets a limit order for below the price to buy expecting a dip and then a rise and then have a person who bought at a higher price as it dips, so he uses a stop loss to cut his losses. They both fill in each other making this hypothetical possibly true. Am I understanding this right or am I bananas lol. Someone help me lol!

[@deeplizard]

You are getting there with your understanding. There are a few holes that I see in your logic. Here are a couple of things: 1) Stop orders are just delayed market orders. 2) Stop-limit orders are just delayed limit orders. They are usually takers. See this one for more details on this: kzbin.info/www/bejne/qHe7aIKAedl-mMk 3) Every trade is a match between a maker and a taker. See this one about how orders are matched: kzbin.info/www/bejne/r6C8qGiDna-ZkMk The full list can be found here: kzbin.info/aero/PLZbbT5o_s2xr17PqeytCKiCD-TJj89rII Let me know if you still have questions.

[@JohnSimons0314]

Dude. Excellent explanation.

[@deeplizard]

Hey John - Appreciate you letting me know!

[@paragjyotideka1246]

wow glad that I clicked on this on my first search. so well explained.

[@ernestoflores2335]

This was great , thank you

[@TonyManso]

Best explanation I've seen about this. Thanks for sharing, and keeping me from having to publish this video myself LOL :-)

[@matthewdouris8804]

no ads. love it! id tip you Redd Coin if that was a thing yet

[@allourep]

At around 7:30, Is this guy calling 9125 "nineteen twenty five"?

[@Harnas31]

HI thank you for the video, amazing. I have to admit I don't understand one thing . From [12:35] you are saying: If the buy-side makers could, they would move the orders up to fill in the gap ..... you will see a big sell wall in a small dagger like shape on the buy side and the price is rising. I do not understand what you mean by seeing big sell wall in a small dagger like shape ? Where can I see it, on the order book ? There I can see only walls , or maybe you mean on price chart - then by dagger I would understand that you mean so called bearish pinbar, candlestick pattern ? Could you explain what you mean ?

[@deeplizard]

Hey Harnas31 - Thank you! Sorry about that. I see an issue. This sentence: you will see a big sell wall *in* a small dagger like shape on the buy side and the price is rising. Should read like this: you will see a big sell wall *and* a small dagger like shape on the buy side and the price is rising. The pronunciation was weak there. Let me know if it makes sense now. Here are some more thoughts: When buy side takers are the aggressors and are taking supply from the book, the sell side of the depth chart will appear to be steep/deep at the lowest asking price. This steep/deep part is the so called “wall”. The makers on the buy side are left at lower prices, and as they start moving their prices up, the depth chart will look appear shallow in the gap during this process. The shallowness in the gap is the so called “dagger shape”.

[@Harnas31]

Now I get it, thank you.

[@alinaeemchaudhry2262]

that was a great video there's a confusion you said no trade can occur with makers alone how's this? if a sell order is available in order book with ask price of 1$ me as a buyer can place limit order with bid of 1$, I will be a market maker and still the trade will execute buying from that seller who asked 1$. isn't it? (maybe it is not practical but is this possible hypothetically?

[@oakcakaya]

If we see a large bucket of sellers and there is no equivalent in the buyers bucket, does that mean the price would go down at that large sales bucket. To me, it only tells that many people will sell at that price, not neccessarliy sell off will start at that point, am I looking at it right?

[@michaelgordon3241]

Dude nice explanation but you should also say in simple language that in short term trading when the green side is bigger than the red side it means the price is falling and a potential buying opportunity and when the red side is bigger it means the price is topping out qnd a good time for selling

[@deeplizard]

This is NOT correct. In fact, the end of the video attempts to point out that a depth chart does NOT tell us which way the price will move. The reason is because we cannot see the takers. Additionally, the depth chart does not show us the makers over time. It's just a snapshot at the given moment. Any serious analysis would require a time component.

[@patrickwheeler7107]

Thanks for providing this

[@deeplizard]

Hey Patrick - You're welcome!

[@AmirIskandar]

You somehow explained this simpler than any videos I watched so far, in a non excruciatingly long duration

[@Astardes2]

So what do I look for on the order book before I long or short?

[@akeelmohamed1825]

This videos live exmaple kzbin.info/www/bejne/pF6qmmSDidJ7fMk

[@NR1BASS]

Very well explained. Subbed!

[@dovenix2852]

If you had a hole in your ceiling, would you measure it in height? Or depth ...

[@superkruger]

Exactly the detailed explanation I was looking for. Thank you!

[@k-kraft]

I just wanted to know why it always stepped up away from center, thanks for sharing the insight.

[@mnieuwhof]

Well done on this video!!!

[@deeplizard]

Hey Marc - Thank you for letting me know! Appreciate that!

[@the_rollback]

You could have taken a screenshot … Either way, very crisp clear explanation.

[@samshabbar]

What does it mean when the buy side and sell side are identical? if you need an example, go to bittrex and look up ada. Is this normal?

[@gizmobently]

This was an excellent and one of the best explanations of the depth chart that I have seen on you tube so far, and the buy and sell side order books. I will have to look at it a few times for for this to sink in. Can you make a video that will present an actual buying and selling scenario where a person is wanting to place a limit buy order in using funds from one crypto and buying in to another crypto while looking at and utiilizing the depth chart for placing the order? I place limit orders for cryptos all the time an and will admit I have actually no idea(what I am doing) how this relates to the order books in front of me, and only doing this to save money on the transaction. But I really need to have some strategy in mind when doing this, and this video helps me understand the concept of what is being presented, but it would be nice to show how to get some kind of strategy together when placing these limit buy or sell orders. Could you do this for us, as I think this will help many understand this concept of using the depth chart on what is in front of our orders or where we can best utilize this buy order in at. I have a limit order to buy in right now and that is how I came to see this video. In the long run, these charts change so much and that is where my confusion is staying for now, as this is not a stagnate view or strategy to plan, from what I see, right or wrong. Does any of this lead you to make some kind of forecast in where the asset is headed short term when looking at these buy and sell orders? One last question. In your experience, what is the cheapest and best way to buy a cryptocurrency on an exchange for two scenarios. Number 1 scenario, is using your bank account to buy the widest selection of cryptos offered directly with no holding period on funds to switch out of. Do you know of any method you can use to place limit orders from a Nano ledger directly to an exchange, and if not, which exchange will be able to produce fastest transaction times to sell out of crypto? I am always concerned that one day these exchanges will get hit hard with orders to sell, and not be able to handle them. Then you have to deposit to that exchange before you can even begin to sell. Any ideas or tragedies on this? I appreciate all you have done. Sorry for all the questons but take them slow and one at a time.

[@MooseMeus]

cut your internet just use the print screen key, then paste that image into paint.

[@dennisschmidt975]

Very helpful, thanks

[@alexandersandino1988]

Hello, I have a question. Does this order book apply to the stock market too ? Thank you in advance!

[@GuNN_Bjorn]

my lord... wish I could of bought BTC at these prices

[@MoneyANDfinance27]

Very informative video! What action executed on a depth chart creates either a green or red candle?

[@deeplizard]

Hey sokker - Thank you! Have a look at these two for details on the candles. deeplizard.com/learn/video/cmwj66x0pU4 deeplizard.com/learn/video/aGvCgwRMOXU

[@pacogonsalez1206]

best explaind..... , you have 10+

[@onetwo4833]

Fantastic video man.

[@deeplizard]

Hey One Two - Thank you! Did this one clear up your other question about liquidity?

[@onetwo4833]

Yeah man, completely. I've watched a bunnnnch of videos and yours were the only ones that I found easy to understand. The thought and effort you put into making your vids easy to understand makes a huge difference. Thank you :)

[@deeplizard]

I really appreciate that! You are welcome! 🚀

[@puzzle7474]

thank you :)

[@mirondraghici5356]

good work. i subscribed

[@artemusjames]

Very helpful;, thank you

[@deeplizard]

Hey Artemus - Thank you & you are welcome!

[@yannhijazi]

Thanks for the video. Definitely a must see if you are interested in trading. Took me a while to figure this stuff out by myself.

[@deeplizard]

No problem Yann - Appreciate that!

[@Avalanchanime]

*Majestic.*

[@Kanzler16]

Such a cool video! thanks for sharing! which software do you use to create those nice videos?

[@deeplizard]

Thanks Kanzler! I appreciate that. The software is called Camtasia. Link: www.techsmith.com/video-editor.html

[@letsgetfit6696]

I really wish there was a feature to remove color from the order book and change the language of what the 2 sides are labeled. The way they label and color things throws me off and makes me think the opposite of what the info is suppose to tell me. Is it just me? Green and red are very powerful colors for the brain and trigger an association. And the wording, instead of being labeled"can be bought at" I wish it would say "selling at" for example.

[@deeplizard]

I see where you are coming from. It's a subtle distinction. The logic flips depending on weather we are a maker or a taker. The wording is speaking to the potential buy side taker who would want to know how much can be bought for the given price or better. A buy side taker has to look at the sell side makers (red side) to see how much they buy at each price. So how much sell side makers are selling. Interesting ...

[@HomeFitness101]

Great Video

[@deeplizard]

Appreciate that Victor. Thanks!

[@schilll]

i thought i understood them but i wasn't sure, thanks for the video!

[@zacharywalton4907]

In the example of only Makers in the market and BTC was illegal... Wouldn't many people not be able to react quick enough to cancel their orders? I mean I love how the "News" reports time to buy a certain stock but its neared its peak...

[@DajaMythBusters]

Great channel, tight well-produced content, thank you. How useful would a tool that allows someone to visualize the Depth chart over time be?

[@deeplizard]

Hey Da Ja Le - Thank you! Appreciate that & you are welcome. That is an interesting question. I'm not sure what type of signals might lurk in that data. I haven't crunched that data myself. One thing that I can say is that I think it would be a tough for a human to visualize it over time. It would be a surface on a 3D plane. Well, unless there is a more clever way to do it. This type of thing is better suited for computers. I plan to cover the GDAX API soon. Before I get into to that, I'm doing an intro to data science/code that starts here: kzbin.info/www/bejne/mmKUlJt9bL9grs0

[@charlieabbot3649]

Good stuff! Now I know how to make a depth charge.... ummmmm, I mean use a depth chart.

[@saswatsarangi6669]

Also buyers want to buy at lower price so should they be called bulls? I know this is not terminology debate, still

[@nikhilschmelzle5654]

thanks!!!1

[@marynarkw]

Would you be so kind to reply to my question. I am looking for a tool which will place bids for me automatically as a maker at the highiest possible price in the order book (so my order will have a chance to be filled first there without being market taker) And if a price e.g. of btc increases (without executing my order) that tool place the highiest bid as maker quickly and automatically until reaches my set limit. So I do not need to do that manually. Can you please advice me please. I would really appreciate that.

[@deeplizard]

I haven't used any third party tools like this, but you can do this yourself with the Coinbase API. However, it requires coding: docs.pro.coinbase.com/

[@marynarkw]

@@deeplizard thank you

[@OPTIONALWATCH]

10:51 🤣 good one!

[@OPTIONALWATCH]

10:10 suppose the Gov says BTC is illegal? Time to switch to Monero!

[@G8tr1522]

I like the thought experiments. Helps me understand the game theory behind it.

[@Strongwords]

This gdax site don't exist anymore. Where do I go for this?

[@donruiz4949]

Most exchanges have a depth chart.

[@franklarkin6076]

Put the video at 1.25 or 1.5x speed before watching.

[@highlifebeats4943]

At the 7:05 you say '80 btc MUST be sold to these bidders before our order will be fulfilled" i don't get that - if you wanna buy - you buy right... i mean... what do you mean why do you have to wait for they order to be fulfilled..?

[@deeplizard]

It depends on the price you are willing to pay. In the example, other buyer were willing to pay a higher price. The buy orders are lined up by price on the order book.

[@highlifebeats4943]

@@deeplizard Yeah I get it now, really good vid this. Thank you for explaining.

[@blacknemsis2456]

Can you dumb this down with some stick drawing of some puppets.

[@gurpchirp]

i'm sure all of that was perfectly stated, but my edible just kicked in and i was zoned-out the entire time.

[@jussivalter]

Is it common that whales try to manipulate price trend by making "fake" sell or buy walls to order book?

[@deeplizard]

Hey Jussi - The sell walls that we see are always “real” in the sense that real supply and demand are required to create the wall. The only way a wall could be truly “fake” is if the exchange was displaying false information. Now, fake and real demand are a matter of intention. If a whale puts up a lot of supply (sell wall), and intends to remove the supply if the price rises closer to their price. This could be called “fake”, but we can’t easily know their intentions. People/algorithms changes their minds all the time. For this reason, experienced traders will not trust walls that are further away from the current spread. The closer to the spread, the more real the supply and demand is. Checkout the market manipulation section in the GDAX trading rules (they have some manipulation techniques listed): support.gdax.com/customer/portal/articles/2725970-trading-rules Here is a video on front running that may interest you: kzbin.info/www/bejne/nYnSnHxnjJ2En5o Hope this helps!

[@caricatureparty]

or you could just do a screen shot.

[@highlifebeats4943]

I'm tryna learn this... but my depth charts for the crypto i'm looking at has $ sign on both x and y axis... not like yours... yours has no $ on the Y axis.

[@Ken.-]

You sure it's not just the letter k?

[@sumitmangar8563]

take me back in time I want to buy 2 bitcoins at 8k for 16k

[@REZZA2020]

May I be first to introduce you to the wonderful tool called "SCREENSHOT" - You disconnected your internet !?

[@metube2118]

bro the way u explain gives me headaches 😩

[@GoatedBryan]

9125 not 1925