Guide for traders

Although there is no way to determine by 100% whether the type of the market is "bearish" or "bullish" and how will prices move in the future, we can do the following test:

If we want to buy, then we can apply market making by placing a small purchase order in the first place (top) of the Order Book. If we face a lot of competition from other buyers and our order has been moved 4-5 positions below from top, and at the same time the sell orders on the opposite side of the Order Book are fulfilled, then we have to suspect that the price will rise and that we should consider to apply market taking. If, however, the order we initially set up is immediately fulfilled, then we must have reasonable suspicions that the price will fall and if we want to buy, we should place our order in different price - lower than we initially did.

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Testing the Market as a Buyer ❺❺❺ - average rating 5 from 5 (based on 71 user reviews)