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OB Depth Overlay

OB Depth Overlay renders colored bands behind each candle that represent the bid/ask dominance in the order book at different depth levels. Unlike OB Imbalance (which draws in a subchart), this overlay paints directly on the price chart, giving an instant visual read of where buy or sell pressure concentrates.

How It Works

At each candle close, the indicator takes the last order book snapshot and computes dominance at 5 configurable depth bands measured as a percentage distance from the last price:
Dominance = (Bids − Asks) / (Bids + Asks) × 100
BandDefault RangeMeaning
Band 10–1%Closest to price — tightest spreads
Band 21–2.5%Near-price depth
Band 32.5–5%Mid-range depth
Band 45–10%Wider depth (disabled by default)
Band 510–25%Full book depth (disabled by default)
  • Positive dominance → green band (bids dominate) below the candle
  • Negative dominance → red band (asks dominate) above the candle
  • Band opacity scales with the strength of dominance (stronger = more opaque)

Settings

ParameterDefaultDescription
Opacity Cap85%Maximum band opacity at 100% dominance
Min Ratio Bids10Minimum bid dominance (%) to show green band
Min Ratio Asks10Minimum ask dominance (%) to show red band
Per-band togglesBands 1-3 on, 4-5 offEnable/disable individual bands
Per-band colorsGreen (bids), Red (asks)Customize colors per band

Trading Applications

  • Confluence with price action: green bands below support levels confirm passive buying interest
  • Divergence detection: price rising but ask bands growing signals potential reversal
  • Multi-timeframe depth: compare narrow bands (0-1%) vs wide bands (2.5-5%) — tight dominance often leads price, wide dominance provides context
  • Combine with Delta: overlay shows resting orders, delta shows aggressive execution

Notes

  • Data comes from order book snapshots taken every ~15 seconds
  • Each candle shows the last snapshot of that candle interval (candle-close printing)
  • Only available on exchanges that provide order book data (Binance Futures and Spot)