Depth Concentration — Signal Playbook

What it detects

Resting depth is piled at the touch: the first level holds several times the average size of the four levels behind it, both sides combined. The book looks liquid at the front — but there is little behind it if the front trades or pulls.

How Depth Concentration paints across a heatmap row — the colour language it speaks on the live map.

How VYX surfaces it

VYX evaluates Depth Concentration live on every candle across 300+ Hyperliquid markets and paints it onto the heatmap, so an unusual impact reading stands out at a glance instead of hiding in a watchlist. That is the job it does in the workflow: it is a scan filter and a piece of context, not an automatic entry. Scan the map for where Depth Concentration is firing, focus that market to read the signal against price and the confirmation cues below, and let the next candle or two resolve before acting on it.

How to play it

Use it as scanner context, not an automatic entry:

• Treat the big touch size with suspicion — it is one cancel away from an empty front.
• Expect gappy fills: a market order that exhausts level one travels several levels fast.
• The displayed touch overstates what you can actually get filled without impact.
• Watch what happens when the front level trades: refill = real interest, vanish = decoration.

Confirmation

What strengthens the read:

• The front level is consumed and price jumps multiple levels.
• The concentration persists across candles rather than flickering.
• Spread widens the moment the touch is hit.

Invalidation

What kills it:

• Depth refills evenly across levels — the book normalizes.
• The front level absorbs real flow repeatedly without vanishing.

Risk & honest evidence

Respect the limits:

• Front-loaded books are prime spoofing terrain — oversized touch orders are often pulled.
• A snapshot of displayed liquidity only; hidden and iceberg size is invisible to it.
• Evidence: grounded in market-microstructure research. VYX's own live backtest is still accruing — treat this as scanner context, not a proven edge.