Orderbook

Overview

The Runbot Orderbook indicator is a powerful tool designed to analyze real-time orderbook data for crypto trading pairs. It visualizes the distribution and intensity of buying (bids) and selling (asks) orders at various price levels. Traders can use this indicator to detect critical market events, such as buy or sell walls, and thus make informed trading decisions based on actual market demand and supply dynamics.

Interpretation

The indicator primarily represents market sentiment and liquidity at certain price points:

• Green Line (Bids): Reflects the strength and depth of buying orders. An upward spike indicates strong buying interest, potentially signaling a bullish market sentiment.

• Red Line (Asks): Represents selling pressure. Higher values or sudden spikes suggest an increased willingness to sell, possibly indicating bearish market sentiment.

When the bids significantly surpass asks, it suggests a potential upward price movement (bullish), while the reverse may signal a downward price move (bearish).

Ticks represents the Orderbook lines. 1 tick = 1 line.

Indicator Triggers:

Orderbooks indicator triggers

In zone

Activates when bids or asks are consistently within a specified percentage range. Useful for identifying stable market conditions or consolidation periods.

We want to place a long signal when the first 5 bids ticks in the Orderbook represents between 75 and 100% of the size

Sustain level

Alerts users when bids or asks sustain certain levels for a predefined number of candles, helping traders detect persistent buying or selling pressure, such as significant buy/sell walls.

We want to place a long signal when the first 5 bids ticks in the Orderbook sustains 75% of the liquidity during at least 10 candles

Runbot Trading Tips

To maximize effectiveness, consider the following tips:

• Combine with Price Action: Use the Orderbook indicator alongside candlestick patterns or support/resistance analysis indicator to confirm trading decisions.
• Adjust Parameters Wisely: Fine-tune the percentage range and candle duration to match your trading style, short-term scalping or longer-term swings.

• Watch for Divergence: Pay attention to divergences between orderbook signals and price movements. If prices fall despite strong bid activity, it may indicate market manipulation or hidden bearishness.

• Monitor Sustained Levels: Consistent high levels of bids or asks might signal upcoming price breakthroughs. Position your trades accordingly to benefit from these imminent market shifts.