What are the steps to read a depth chart on Coinbase Pro?

3 answers

• Lambert SuarezFeb 16, 2024 · a year ago
  Sure! Reading a depth chart on Coinbase Pro can seem overwhelming at first, but it's actually quite simple once you understand the basics. Here are the steps: 1. Open Coinbase Pro and navigate to the trading pair you're interested in. 2. Look for the depth chart, usually displayed on the right-hand side of the screen. 3. The depth chart consists of two sides: the buy side (bids) and the sell side (asks). 4. The vertical axis represents the price, while the horizontal axis represents the quantity. 5. The depth chart displays the cumulative quantity of buy and sell orders at different price levels. 6. The thicker the line, the higher the quantity of orders at that price level. 7. The area where the buy and sell sides meet is called the 'spread'. It represents the current market price. 8. You can hover your mouse over different price levels to see the exact quantity and price. That's it! By analyzing the depth chart, you can get a sense of the supply and demand dynamics in the market and make more informed trading decisions.
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• Salazar NymannJun 23, 2022 · 3 years ago
  Reading a depth chart on Coinbase Pro may seem like deciphering a secret code, but fear not! I'll break it down for you in simple steps: 1. Fire up Coinbase Pro and find the trading pair you're interested in. 2. Locate the depth chart, which is usually chilling on the right side of your screen. 3. The depth chart is divided into two sides: the buy side (bids) and the sell side (asks). 4. The vertical axis represents the price, while the horizontal axis represents the quantity. 5. The depth chart shows the cumulative quantity of buy and sell orders at different price levels. 6. The thicker the line, the more orders there are at that price level. 7. The area where the buy and sell sides meet is called the 'spread'. It's like the epicenter of the market action. 8. You can hover your mouse over different price levels to see the exact quantity and price. Voila! Now you can navigate the depth chart like a pro and make smarter trading moves.
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• Jeff HatchOct 11, 2024 · 9 months ago
  Reading a depth chart on Coinbase Pro is a fundamental skill for any trader. Here's a step-by-step guide: 1. Launch Coinbase Pro and select the trading pair you want to analyze. 2. Locate the depth chart, typically positioned on the right side of the interface. 3. The depth chart is split into two sections: the buy side (bids) and the sell side (asks). 4. The vertical axis represents the price, while the horizontal axis represents the quantity. 5. The depth chart visualizes the cumulative quantity of buy and sell orders at different price levels. 6. Thicker lines indicate higher order quantities at specific price levels. 7. The 'spread' is the area where the buy and sell sides intersect, indicating the current market price. 8. Hovering over price levels reveals precise quantity and price information. That's it! By mastering the art of reading depth charts, you'll gain valuable insights into market trends and improve your trading strategies.
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