Dear Traders and Support,

Can you fill me in on the details of Market Depth? What does it exatly mean? What if on Bid side(red colored price) is twice or more bigger number(volume?) is?

Regards,
Kirilla

If u traded stocks i think that might give u an indication of what it means. shows how many investors are willing to buy and on what prices and how many of them are willing to sell and on what prices. but that only for those who list their orders in the market others dont they just market execute.
i think that is the closest to right but i am not sure

Thank you. And what does that mean if bid side is 10 times bigger than ask side? price should be going down in ideal situation?

JForex market depth encompasses of the prices and liquidity taken from many different liquidity providers. While developing their strategies, traders can utilize the market depth as an additional resource providing information about the current market.

One of the best parts for me is that you get level II information, so you can see what the “big boys” are up to. The Dukascopy Level II market depth screen shows quantities (in US$ millions) of orders that are sat there waiting to be filled (limit entry orders). Those of you who trade without level II are really flying blind. You have no idea where market sentiment lies if you cannot see where the institutions are putting their money.

With level II data, you can see all the forward buy & sell orders that have been placed. Supply and demand is driving price, so you can gain a much clearer picture of where price is likely to go next. This really helps with confirming other clues you may be getting from other places.

Bye Igazsagoszto

It's important to keep in mind though, that this is where orders exsist. This is not where orders are going to be executed. Just like equity HFT, there a millions of dollars of orders that go unfilled, either cancelled or not touched. True market price is only realized once a price is traded. I am of the opinion that the Dukascopy sentiment index (contrarian) is a better indicator of where price is headed than possible orders that may get filled or cancelled. Here is short article I wrote explaining the sentiment index. https://www.dukascopy.com/fxcomm/fx-article-contest/?action=read&article=Retail-Positioning-The-Scary-Uncle&id=365

Yes , you all right to take into consideration market dept level II ,but all the time bear in mind that no indicator is the prefect one for itself ,rather a small direction sign , but the forex market is very big and the Dukas level II dept might not be shown what the level II of CURENEX (wich have a lot more amount of trades than Dukas).So ,what i am trying to say is that finnaly ,the decision of taking a trade in on direction or another should be taken only after a very strong fundamental and technical study and with a small amount of luck also ))

HyperScalper for JForex measures the balance of the DOM. As you can imagine, significant processing is needed to do this, and to make any sense of it. So, in general, Price moves to Size. When there is consistently larger quoted size held on one side of the DOM, price is generally moving in that direction. As others have said, never rely on just one single indication, but the DOM is, in a sense, the ultimate leading indicator since DOM shifts occur before price movements take place, provided you are able to tease the DOM trending out of the rapidly changing data