# Market Depth analysis



## stargazer (12 April 2007)

Hi all
Could someone be good enough to explain please.


Buyers
Number    Quantity          Price        

5           91175            1.225      
4           41531            1.220      
1           6895              1.215      
4           254780          1.210        
6           92870            1.205       
6           88980            1.200       
5           96641            1.195       
5           173614          1.190       
4           88500            1.185       
13         159600          1.180  

 sellers
Number  Quantity     Price        
1.230     13361            1 
1.235     299708         10 
1.240     261700         11 
1.245    153964          7 
1.250    312809          28 
1.255    478200           7 
1.260   196700          10 
1.265    128000          4 
1.270     80077          6 
1.275    88000           3 

Last 10 Trades
Time Price Quantity 
03:23:04 PM 1.230   108 
03:23:04 PM 1.230   1,808 
03:23:04 PM 1.230    109 
03:23:04 PM 1.230    6,614 
03:23:04 PM 1.230    10,000 
03:20:36 PM 1.235    3,546 
03:20:36 PM 1.230    2,954 
03:19:06 PM 1.230     13,534 
03:16:07 PM 1.230    3,215 
03:16:07 PM 1.230    8,858

Its hard to get these to line up but can anyone explain to me what is happening here as far as market depth.  These are the E TRADE market depth figures for BPT.

How do I interpret what is going on?

Is this enough info to gauge what is going on with this stock?

I read sometimes people say I was in the queue at x amount how do you work this out or know this?

Cheers
SG


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## BIG BWACULL (12 April 2007)

I think you cant workout where you are in the queue on our basic setup with e trade I think you have to subscribe for another of their platforms, I think power etrade or etrade pro. Anyone correct me if im wrong.


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## BIG BWACULL (12 April 2007)

stargazer said:


> Hi all
> Could someone be good enough to explain please.
> 
> 
> ...



Buyers first line 5 buyers with total 91175 shares offering $1.225
Sellers first line 1 seller with total 13361  shares offering $1.23
Last 10 trades first line 108 shares sold at $1.23 at 3:23:04PM
Hope that helps but someone else maybe able to explain better CHEERS BB The beginner


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## doctorj (12 April 2007)

> How do I interpret what is going on?
> 
> Is this enough info to gauge what is going on with this stock?



Market depth is a poor indication of anything.  Its common for people to stack either side of the depth with orders they don't intend to execute to aid some other goal.

Eg.  Place a few large sells a couple of ticks away from the action with the hope of shaking out some sellers to shift their offers down to help you pick up a few cheap shares.

I believe there is scope for comparitive market depth analysis to be useful, but haven't done much (any...) research on it.  What I mean is comparing the volume or number of bids/offers to previous points in history.


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## stargazer (13 April 2007)

Hi 

Thanks for those replies.  So a more advanced MARKET DEPTH is required to be able to spot some of the games that go on.

Just from a basic  view i was wondering whether it had any bearing like more sellers than buyers etc.  Could give a clue the strength of a price.

Cheers
SG


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## wayneL (13 April 2007)

Don't forget not all trades come out of market depth. Those traders who hit the bid or ask won't even appear in the depth at all.

However, in the US where trades are executed through a market maker, market depth analysis becomes more valid. Many day traders turn this into an art form by trying to determine which MM is in control of the market at any particular time (the axe)

Coming back to OZ though where all trades are throrgh SEATS, I don't believe depth tells you anything.

fwiw


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## tech/a (13 April 2007)

> I don't believe depth tells you anything.




Where you are in the queue.

I cant believe that people actually think they can benefit from watching depth.
*Do some real analysis!!*


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## stargazer (13 April 2007)

Hi all

Thanks for that.  This was totally a question out of curiosity rather than using it as a way of determining whether to buy in or sell etc.

Your answers have cleared it up for me thankyou.

Cheers
SG


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## purple (13 April 2007)

If you see a huge amount coming in, say 2 billion or so, then it's worth checking up company announcements to see if directors have been buying or funds offloading.


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## Captain_Chaza (13 April 2007)

Watching the Market Depths' is truly a wonderful spectacle

It is just like watching an Iceberg waiting for a Titanic

I for one never show my cards and never wait in any queue!
Sorry, but that is just the sort of guy I am!

Salute and Gods' speed


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