Keith Alan Profile picture
May 16, 2023 β€’ 6 tweets β€’ 5 min read β€’ Read on X
1/6 #OrderBookAnalysis 🧡

TLDR: Liquidity=Sentiment

Liquidity placement in the order book reveals #Sentiment for a price range! πŸ“ŠπŸ“ˆ

πŸ’§ When more liquidity is concentrated around a particular price level, it indicates increased confidence or interest from #traders... Image
2/6 Analyzing the order book with a #DataViz tool like #FireCharts helps you mitigate risk by replacing speculative decisions with data based decisions.

No reason to speculate when you can literally see where higher concentrations of liquidity mark resistance and support. #FireCharts 2.0 (beta) show...
3/6 Knowing where liquidity ISN'T, is as important as knowing where it is. Thin liquidity indicates zones with greater potential for volatility since price moves through them with less friction.

But there is one more aspect of #OrderBookAnalysis I personally value the most... Image
4/6 The ability to see liquidity movement and identify potential momentum shifts developing in the order book is actionable insight that gives you an edge. #ALPHA πŸ’ͺπŸ’°

Volume Percentile filtering in #FireCharts 2.0 (beta) increases contrast in the chart to help you see it... Image
5/6 #FireCharts shows #BTC ask liquidity from the $29k - $32k range moved to the $27k - $29.5k range.

Short term, it indicates sentiment to distribute above $30k is #trending into the sub $30k range.

If that trend continues, the macro implications of that shift is bearish. #NFA Volume Percentile filtering...
6/6 I hope you found this 🧡 on #OrderBookAnalysis with helpful. If you did, please comment and share it.

If you want to learn more about #FireCharts check out the video tutorials at the bottom of the page. materialindicators.com/products/fire-…

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More from @KAProductions

Jun 27, 2022
1/8 Some conflicting clues for #Ethereum around the Weekly candle close last night. With the Monthly close flowing into the 4th of July holiday weekend, expecting some extra fireworks.

A 🧡using #TechnicalAnalysis and #TrendPrecognition to analyze #ETH...
2/8 Sunday night in the final hour or so before the Weekly candle close, #ETH price was suppressed < $2 below the 200 WMA. Moments after the W close/open, price reclaimed the 200 WMA. PA has danced above and below the line since.
3/8 Regardless of whether #ETH can close this week above the 200 WMA, the retest has already been invalidated. Will look to next week to see if we can open and close a full candle body above the 200, that is if it doesn't retest the lows first.
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