# Combined Books

## Definition

**Combined Books** represent the **total liquidity available in the order book** across multiple exchanges, encompassing both **bids** (limit buy orders) and **asks** (limit sell orders) at various **depth levels**. These depth levels typically include:

* **Quote:** Best bid and ask prices.
* **1%, 2%, 5%, 10%, 20% Depth:** Liquidity within a percentage range from the mid-price.
* **Full Book:** Entire visible order book liquidity, covering all price levels.

#### **Key Insights:**

* **Total Market Liquidity:** Measures the aggregated buying and selling power across exchanges.
* **Depth Analysis:** Highlights liquidity concentration at different price ranges.

#### **Why It Matters:**

* **Market Stability:** Higher liquidity generally indicates more stable price movements and reduced slippage.
* **Volatility Risk:** Thin liquidity at key depth levels may signal potential price swings.

The **Combined Books** indicator provides a comprehensive view of **aggregated market liquidity**, enabling traders to make more informed decisions about entry, exit, and risk management based on order book dynamics.