Market Depth
Market depth, or the order book, shows the list of all buy and sell orders waiting in the market.
Quick Reference:
Shows supply and demand. Gauge liqiudity. Number of orders at different price.
Expanded Explanation:
The order book is like a window into the supply and demand of a stock. On one side, you see the bids, how many shares buyers want at each price. On the other side, you see the asks, how many shares sellers are offering at each price point.
If you see a lot of buy orders stacked at a certain level, it may act as support. If there are many sell orders above, it may act as resistance. Market depth helps traders anticipate how prices might move when large oders hit the market. For beginners, market depth can be overwhelming at first, but it provides valuable insight into how active and competitive a stock is.