On the meaning of "walls" and liquidity

stochastic

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Quote from: RyNinDaCleM on February 22, 2012, 10:04:29 PM

Quote from: bitcoinBull on February 22, 2012, 09:54:35 PM

What's funny about walls is that while most people assume buy-walls are "fake", on the other hand, whenever an ask-wall appears they run for the hills.

This is due to the ingrained "need" for fiat. They would rather be stuck with over priced fiat rather than over priced BTC. Wink

Loss aversion ( see Kahneman and Tversky, 2000. Choices, values and frames )

RyNinDaCleM

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Legen -wait for it- dary

Quote from: bitcoinBull on February 22, 2012, 09:54:35 PM

What's funny about walls is that while most people assume buy-walls are "fake", on the other hand, whenever an ask-wall appears they run for the hills.

This is due to the ingrained "need" for fiat. They would rather be stuck with over priced fiat rather than over priced BTC. Wink

bitcoinBull

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rippleFanatic

What's funny about walls is that while most people assume buy-walls are "fake", on the other hand, whenever an ask-wall appears they run for the hills.

byronbb

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HODL OR DIE

One thing I notice that people seem to mis understand is that a wall is not necessarily resistance because it might actually be providing the needed liquidity at a certain price for someone who wants to buy/sell a large amount.

RyNinDaCleM

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Legen -wait for it- dary

Who knows?
I assess the situation to determine if said wall will halt movement. I look at volume, support, resistance beyond it, where we've been previously, how long it's been standing, a few others.

Then I move on my decision.

phorensic

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Who knows? I've seen 10,000 BTC walls flash in and out of the depth chart within seconds. It usually doesn't mean anything. Bots will be bottin'

copumpkin

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I'm actually a pineapple

I'm just wondering how people interpret market depth around here. Please comment to elaborate on your reasoning process, if you think it's of interest.

Edit: this isn't so much a question about "fake" walls that disappear if you tickle them. I'm just asking about walls that you can assume people actually intend to leave in place.

Topic: On the meaning of "walls" and liquidity (Read 1316 times)