How Order Book Depth of Market works (DOM)
The Depth of Market (DOM) relates to how deep you look at the order books beyond asks and bids at the current price. Using different DOM allows users to focus on order books relevant to their trading methodology.
- Lower DOM allows users to see Order Books based on money in play
- Adjust based on underlying asset price, 1% may be fine for a $500 asset but 10% is more appropriate for a .50 cent asset.
- 100% DOM can show influx of cash for assets over time
- 100% DOM can show buy/sell walls and trader manipulation
Using liquidity in technical analysis has really taken off with crypto exchanges enabling the ability to see liquidity of assets on an asset by asset basis globally. The ability to see this data at an asset level is new to trading and represents an entire new branch of Technical Analysis.
Try using order books with adjusted Depth of Market against your favorite assets today @ https://coinmarketflow.com/ or sign up for our API and use this data for your own application @ https://coinmarketflow.com/subscriptions