Lesson 8: COIN B&A DIFF and TOTAL B&A DIFF

The COIN B&A DIFF indicator measures the difference (diff = difference) between the volumes of limit buy (bid) and sell (ask) orders for the selected cryptocurrency at various depths. Values are displayed in millions ($mln). If the bid volume is larger, the difference is positive; if the ask volume is larger, the difference has a minus sign.

Key characteristics:

Depths:
Analysis of various market depth levels (1.5%, 3%, 5%, 8%, 15%, 30%, 60%).

Key point:
A quick assessment of the ratio between bid and ask for making decisions about entering or exiting a position.
If the bid volume is larger, the difference is positive (for example, 2 mln).
If the ask volume is larger, the difference has a minus (for example, -2 mln), which reflects sellers dominating the market.

To open the indicator:
- go to the [DYOR] Indicators menu at the top of Multichart.
- select the COIN B&A DIFF indicator

To open the indicator settings:
- hover your cursor over the top left part of the opened indicator
- click ⚙(the gear icon)

To enable\disable depths with the data you need:
- check\uncheck the box next to the depths
- depths without a checkmark will no longer be shown in the indicator

 The information in this indicator can help you understand by how many $mln the demand or supply side is stronger at the selected depth.

For example, using the COIN B&AD DIFF indicator on this screenshot:

we can see that at a depth of 1.5% from the current price, on the BTC coin paired with USDT on the 1m timeframe, the DIFF value = -41.66$mln.
Also, values around 25$mln gave decent arguments for a long, and around -60$mln an argument for a short.

These values are not an unconditional rule for all market phases; they only give an approximate range. For better results, synchronization with the other indicators and up-to-date data are important.

TOTAL B&A DIFF.

The TOTAL B&A DIFF indicator analyzes the difference between the total volumes of limit buy orders (bid) and sell orders (ask) for all cryptocurrencies on the exchange.
Values are displayed in millions ($mln). If the total bid volume is greater, the difference will be positive; if ask is greater, it will be negative.
It helps traders see the overall balance of demand and supply in the market by displaying the actual difference between limit sell and buy orders.

The settings are the same as COIN B&A DIFF: depth selection, but values are displayed in $mln only.

Differences between COIN B&A DIFF and TOTAL B&A DIFF:

COIN B&A DIFF analyzes a specific cryptocurrency, giving a local picture of supply and demand for the selected asset.

TOTAL B&A DIFF provides the overall ratio of supply and demand across all coins on the exchange, which lets you analyze the market as a whole.

The main difference between the B&A indicators(from the previous lesson) and B&A DIFF:

- The B&A indicators from the first lesson (Bid & Ask): They show only the current bid and ask volumes, but do not analyze their difference.
- The B&A DIFF indicators: They measure the difference between the bid and ask volumes, which helps gauge the size of the imbalance between buyers and sellers.

The screenshot shows that on the TOTAL B&A indicator, at a depth of 5% from the current price, on the BTC coin paired with USDT on the 1H timeframe, bid= 457.39$mln and ask=570.73$mln.
Instead of calculating the difference between them in $mln yourself, just use the TOTAL B&A DIFF indicator at the 5% depth = TOTAL DIFF 5% -113.34$mln.

🎉 Congratulations! 🎉

You have successfully completed the lesson on COIN B&A DIFF and TOTAL B&A DIFF!