Module 3 / Reading the market
Module 3 · Analysis

Reading the market

Order books, liquidation heatmaps, OI divergence, and funding as sentiment signals.

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Order book simulator

Learn

The order book shows resting liquidity — where buyers and sellers have placed limit orders. Imbalance (more size on one side) and walls (large single orders) hint at short-term pressure, but they can be spoofed and pulled. Read them as context, not as commands.

Practice
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Recall0/1
Recall

A large bid wall that vanishes as price approaches it is usually…

Liquidation heatmap

Learn
Large liquidation clusters are magnetic. Price approaching a dense cluster triggers forced closes, which add directional pressure, which trigger more liquidations. Never place your stop at the same obvious level as the cluster.
Practice
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Recall0/1
Recall

Why avoid placing your stop at an obvious liquidation cluster?

OI + price divergence

Learn

Pairing the direction of open interest with the direction of price tells you whether a move is backed by fresh conviction or just forced flow. Cycle the scenarios below and watch how the same price move means very different things depending on what OI is doing.

Practice
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