Depth Chart
A visualization of the order book showing how much buy and sell liquidity sits at each price level.
A depth chart plots the cumulative volume of buy orders (bids) and sell orders (asks) across price levels, producing two curves that rise away from the current price. Steep walls indicate concentrated liquidity; shallow slopes warn that a modest order could move price sharply.
Traders use it to gauge how much size the market can absorb and to spot large walls that may act as support or resistance. The caveat mirrors the order book’s: displayed depth can be illusory, since large orders can be pulled the instant price approaches. A depth chart shows intentions that can evaporate, not commitments.