VCDepth, Global Market Depth
There are three primary factors for technical analysis; price, volume and open interest. Volume is many times a confirming signal for price while open interest is a precursor to volume. In traditional technical analysis, they often only cover open interest as it relates to futures and options of which have daily open and close, limited exchanges, limited trade, limited volume but have a globally holistic view into market depth for traders with level2 trading access. Its wasn’t until the advent of crypto-exchanges that pulling real-time open interest on individual assets globally was a possibility. The correlation and study of trends associated with open interest of individual assets on a 24/7 market is limited. The opportunity for understanding and leveraging market depth information has never been easier than it is now with VCDepth.
Monitoring market depth tends to lend itself to being a pre-curser to any market move as those open orders become volume. Due to this natural construct, market depth could be considered an “Early Warning/Detection System” . Paying attention to market depth can validate liquidity of an asset before purchasing, validite arbitration opportunities, show indications of market manipulation as well as identify large order drops on the market such as the MtGox BTC sell off. We are reviving the Herrick Payoff Index with an application beyond Options and futures.
We aggressively focus on market depth however the beta release of the site will open up broad spectrum attributes that will make the market view more complete. We have an array of new features coming along with the beta release that are never seen before, extremely useful tools and capabilities. See our Twitter, Facebook and business development newsletters for updates.