In this course we will learn everything related to the order book as and discuss basic concepts such as pairs supports resistances limit order and market order if you are new and you are just arriving make the most of this classes that are quite educational and professional I will be expanding and explaining very professionally each of these concepts.

Question #1:
What is meant by order book and how does the cryptographic order book differ from our local market explain with examples (answer must be written in your own words, copy paste or from another source will not be accepted)

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The register of a local market refers to keeping a record either written or printed of all movements these are selected and classified by buying and selling buyers and sellers who place a price at their interest. i mean this is the easiest way to explain what is a public trade ledger.

A crypto trading ledger is broader as it interacts on the blockchain network interacting with millions of users at a time through interconnected nodes that are in a capacity to solve algorithms very quickly this allows the creation of cryptographic data that can be defined as digital ledger records in pairs for example. if I have TRX/BTC since buyers and sellers are all the time in constantly changing trends and through the volatility of the market can go up or down prices all this is recorded in the buy orders in the order book if I have for example TRX and I want BTC then I place a buy order BTC with trx then this is buy order.

If for example I want any trader to buy DOGE with BTC then the record of the order will be kept in the digital order book in a specific section.

If on the other hand I sell DOGE to get BTC then the record will be stored in the sales order book.

Order books were originally born from traditional trading but now with more sophisticated technology in these conventional order books there is no price volatility as in digital crypto, so we do not have much room to trade within this ecosystem is limited.

In the digital crypto trades the borders are open in a margin of buying and selling in the margin that suits us to buy or sell to always get a profit nobody likes to lose.

In conventional digital markets only one currency is used in the country where you are and is accepted, for this part we do not trade in pairs.

There are no stop loss orders in traditional markets.

in the traditional markets it is not possible to make technical analysis because the markets do not work with Japanese candlesticks or charts.

Explain how to find the order book on any exchange through a screenshot and also describe each step with text and also explain the words given below (answer should be written in your own words).

#1 We open the binance browser and go straight to marketplace.

#2 Then we select the BTC section and select the currency we are going to trade. in this case Dot/BNB

#3 We click on trade

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Here we can see our "Order BOOK".

Sell Orders and Buy Orders DOT/BNB order book.

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Trading Pair : These assets are in an exchange and are used to trade at any time of the day any day of the year for example the pair that I mentioned before DOT/BNB are pairs that exist and all the information is stored in the book order, we can buy or sell these currencies at our convenience we can exchange DOT FOR BNB OR on the contrary BNB FOR DOT everything is relative to our convenience

Supports:

We are talking that in a chart there are buyers and sellers when there is a demand prices in a Japanese candlestick chart the price of the asset fluctuates in waves up and down to this is called directionality of uptrend or downtrend we see that the charts there are supports and resistances or resistances become supports when the price breaks that area and rises more to another historical maximum then the supports are old resistances that in the past were these historical maximums then there remains an area of significant volume in that area. If the price were to fall from the area of the new high it would fall and stop at the support we left behind.

Resistances:

When we are looking at a chart and we see that it reached a high assuming 60k and goes down to 50k then to a support then resistance right now is at 60k to explain you better resistance is a significant volume of buyers at that point. always be guided by volume area.

Example of resistance and support.

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Limit order:

The limit order is the price that the buyer or seller chooses to negotiate to sell or buy an asset at a set price traders never like to lose therefore prices are placed in limit orders for either buying or selling, for example I have a BTC and I want to buy USDT then I place an order at 40k when the price grabs the value estimated by the user then it is activated and executed on the other hand the same thing happens to protect us happens the same thing going down if we calculate a stop loss then we place the lower value if it grabs us a downturn and breaks the support then it is very important to have a stop loss because then we buy the next support. the prices are activated where we place the sell order or buy order. exactly.

Market order:

This order is activated just when you give it to buy or sell at the current market price, it is very easy to use and you do not need to wait to be activated. you have to place is the amount of coins you want to change example I want to buy 15k dollars for btc then we place the value in USDT of 15mil dollars and we will activate the order at the current market price and we will have the equivalent of 15k in BTC more or less 0.4BTC.

3

Explain the important future of the order book with the help of a screenshot. In the meantime, a screenshot of the verified profile of your Exchange account should appear (the answer should be written in your own words)

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The most important thing about the order book

This is trading in pairs you can buy and sell cryptocurrencies 24 hours a day 7 days a week this is stored in the order book, as it keeps a record of all the pairs that are bought and sold along with other more in depth details the time, the purchase price, quantity etc. i will demonstrate how the order book works in binance.

You can see that the FLM/BTC exchange there are two sections one for buying and one for selling with very different prices from each other and the quantities of the coins being sold you can configure it to see the orders by decimals and quantity of orders, sellers and buyers place their bids for another to buy the 2 are appetizing to new buyers. this has buy and sell functionality as cryptocurrency traders according to their calculations and trends buy at their convenience.

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Order to buy

Let's talk about the buy order in mixed sense both buy order and sell order is worked in the same way we are going to work theDOT/BNB pairs then we choose the pair then Limit we choose the price we want to buy and the amount of coins to buy also below we will see the total price of the assets that we are going to use for this purchase.

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DOT / BNB EXCHANGE MARKET

In this option we can trade at the current market price without waiting long times for the price to reach our level if we see a buying opportunity and we see that this in turn benefits us in the future and the price is act for our trade then we buy using the market as our main option. we should only place the options on the currency to exchange it.

These serve us to buy or sell at the current market price so we should only place the amount in the correct pair that we want although we know the market fluctuates in constant volatility when it reaches a suitable price we can buy or sell immediately at the price we want.

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How to place buy and sell orders in Stop-Limit and OCO trades? Explain through screenshots with verified trading account that you can use any verified trading account (the answer must be written in your own words).

It is very important to place stop limit orders but more important to place an OCO order usually we always use to analyze the market and place stop loss but we don't know in which points we should place them for this we should look for the resistances for market exits and get profit and supports to exit the market if these are broken by the trends so protect our capital.

Limit orders:

This order is used when we want to protect our capital or we want to take a profit we just need to follow some very easy to work with indications for both buying and selling assets

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As we see in the previous figure The order prices are in different values for both buying and selling, so we according to our interest in the market at the time of buying or selling our assets must be very aware of this if we see we place the option LImit in the selected boxes, then write the price in the sell order or buy order and select the amount that we will sell at the stipulated price. then press sell or buy the crypto.

Once everything is in order then the price when it reaches the price that we have already chosen the order will be activated and executed so we will get the desired currency at the desired price at the moment.

OCO Order

To make use of this order you must follow the following guidelines.

Select the Option marked "OCO".

then in the price box is the price you want to sell or buy a coin or token you select the price you want to sell or buy.

In STOP here is the price at which you want to exit the market if it falls below that price example you bought at 1000 but if it falls below 950 sell as the selling price is 1050.

In limit: in this box goes the price decreased of the stop, this is in case there are balances in the prices or graphs, then you will sell at the next lower price, for example if you put that the sale is 950 in the stop, then in limit should be less than 949.8 to ensure the stop.

Quantity: is the amount of coins or tokens you wish to sell.

Total: is the amount of coins you wish to buy in case you sell at 1050 coins or tokens.

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How does the order book help in trading to make profits and protect against losses? Share the technical point of view, which helps to explore the answer (the answer should be written in your own words showing your experience and understanding).

The order book helps us to manage sales and purchases of coins that help us to minimize costs that is to say that through a technical analysis or analysis that you want we can determine entry and exit points of the market for this we can use a simple top limit true, if we want to buy coins to accumulate this would be a good option or simply sell at a price that we see regardless of the negative price.

If we see a little more in depth OCO operations help us both to sell at a certain price and to buy at a certain price in addition to that help us to protect us from volatile markets by implementing the system learned in classes of resistances and supports we can determine this OCO operation very easily because below a resistance there are other supports and these will be interacting in our daily operations the psychology of trade plays a fundamental role in the entire crypto ecosystem.

We have to apply all the knowledge of the academy to be able to get a good profit and lower prices for this we use the order book in the trade for profit and protect us, as I say we must study a lot every time more and more and apply all the theory in the real business so succeed and to acquire financial freedom that we want so much.

Conclusion:

In today's class is week 7 left us a Great learning and technical knowledge this becomes one of the strongest tools to complement the strategies that we bring from all previous classes to this what I mean is that in the order books we can see all the current movements that are being made in the and from there we can analyze the graphs make our technical analysis and begin to operate the market choose our entries and exits place a stop loss that are our protection but remember it can be a double-edged sword because if you do not calculate the stop loss properly this could take you out of operation and then continue to rise. Our intention here is to leave aside the greed and fear as both make us lose money, we must follow a winning strategy and be every time better.

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