3 ms·
Unfortunately as a metric this is far too easy to game and is heavily influenced by algorithmic order regimes. Maybe decent as signal in trading strategies but
by eriktrautman 8y ago
Unfortunately as a metric this is far too easy to game and is heavily influenced by algorithmic order regimes. Maybe decent as signal in trading strategies but not useful for real fundamental analysis. Market makers create phantom interest all the time to try and scare the market through stop loss orders.
Also why not focus on the selling interest too? Any one sided metric is even less trustworthy.
- DenGorbachev 8y agoYes, you're right - it's possible to place fake orders and cancel them as soon as the actual trades start happening near them. However, from my experience, it only happens during the pump (when the whales are pushing the price higher). You can see the explanation for including all buy orders here: https://news.ycombinator.com/item?id=18162456 https://news.ycombinator.com/item?id=18162456 Sell pressure is a bit different: while the lowest price is zero, the highest price is unlimited (technically, there is a limit enforced by exchange engine, but it's very high anyway). So actually, sell pressure should be calculated in base currency (in coin itself) instead of USD.