Market Depth (Order Book)

What Market Depth does

Market depth shows:

• Bid levels — where buyers are waiting
• Ask levels — where sellers are waiting
• Volume at each price level

Unlike candles (what already happened), market depth shows current intent — where liquidity is positioned right now.

When to Use Market Depth

Use market depth when you want to:

• Measure real-time supply and demand
• Identify liquidity walls and absorption zones
• Time precise entries and exits
• Confirm breakouts or fakeouts
• Trade short-term or scalping strategies
• Avoid entering into heavy opposing liquidity

Market depth answers:

“Who is waiting in the market, and where?”

How the Agent Uses Market Depth

When you request market depth, the agent:

1. Loads the current order book for the symbol
2. Separates buy-side (bids) and sell-side (asks)
3. Measures:

• Volume imbalance
• Liquidity clusters
• Distance to nearest liquidity wall

4. Uses this information to:

• Refine entries
• Adjust stops and targets
• Avoid low-probability trades

Market depth is never used alone — it complements bars, ticks, and risk rules.

What the Data Represents

Bid Levels

Prices where buyers want to buy High bid volume = strong buying interest

Ask Levels

Prices where sellers want to sell High ask volume = strong selling pressure

Volume

The size of orders waiting at each price Large volume = liquidity wall

Common Use Cases

1. Liquidity Wall Detection

Show market depth and identify major buy and sell walls.

The agent highlights price levels where large volume may block price movement.

2. Entry Timing Near Support

Enter buy near support only if bid liquidity is building.

Helps avoid entering when buyers are weak.

3. Breakout Validation

Confirm breakout only if sell liquidity above price is thin.

Prevents chasing fake breakouts.

4. Stop Placement Optimization

Place stop loss beyond the nearest liquidity cluster.

Reduces stop hunts and premature exits.

5. Scalping & Short-Term Trades

Use order book imbalance to time a scalp entry.

Order flow strength determines direction and timing.

Using Market Depth with Other Data

With OHLC Bars

Bars show structure, depth shows pressure.

Trend is bullish on H1 — check order book for entry timing.

With Tick Data

Ticks show movement, depth shows intent.

Price is ticking higher, but check if sell wall is absorbing.

With Chart Drawings

Drawings define where, depth defines whether.

At my resistance line, check if sell liquidity is stacked.

Watchlist & Scanning Integration

Market depth is applied only after symbols pass filters.

Example:

Scan my Forex Majors watchlist, find bullish setups, then confirm entries using order book imbalance.

Depth is used for final confirmation, not symbol selection.

Risk & Safety Considerations

The agent automatically:

• Avoids trading into strong opposing liquidity
• Reduces size in thin order books
• Blocks scalping during abnormal depth spikes
• Respects account margin and exposure limits

Market depth cannot override safety rules.

Example Prompts

Simple

Show market depth for EURUSD.

Liquidity Analysis

Identify major bid and ask walls on EURUSD.

Entry Confirmation

Enter buy only if bid volume outweighs ask volume.

Breakout Check

Confirm breakout only if liquidity above price is thin.

Scalping

Use order book imbalance to time a quick scalp.

Advanced

Combine H1 trend, M1 candles, and order book for entry.

Full Flow

EURUSD is bullish on H1.
Price is near support.
Enter buy only if bid liquidity is strong and no large sell wall is above.

Market Depth Decision Flow

1. Account safety check
2. Risk limits validation
3. Watchlist eligibility
4. Bar structure analysis
5. Market depth confirmation
6. Trade execution

Depth refines decisions — it never bypasses risk.