Buying vs. Selling Volumes

[nomore4s]

Re: Buying vs Selling Volumes

mind you I am not looking to capture all of the trend.. the middle will make me ..whatever...

Wise words that most traders fail to understand imo

 

[LostInTransit]

Re: Buying vs Selling Volumes

Timmy if that is the case unless you have sophisticated Proprietary software you carn't for the ASX.


If it wasn't the case then,

A man walks into the Bottle shop and buys a slab of beer.

How many stubbies were purchased? 24 (by the man)
How many stubbies were sold? 24 (by the bottle shop)

Number bought MUST = Number sold.

I have heard the term 'there are more buyers then sellers'. How's that fit in to your equation?

And can you give me example of 'there are more buyers then sellers' when this can occur?

 

[Timmy]

Re: Buying vs Selling Volumes

I have heard the term 'there are more buyers then sellers'.

There certainly can be more buyers than sellers (but not more shares bought than sold). In my experience that line is a bit of a throwaway line, meaningless.

 

[nunthewiser]

Re: Buying vs Selling Volumes

i think he talking about market depths and what "appears " to be more buyers to sellers .........

easy to manipulate market depths if one feels so inclined on low cap stocks

market depths mean squat in my view UNLESS on the top lines , and even then they only a rough guide as most of the frantic actions comes from left field and not in the depths at all

only my opinion

 

[Trembling Hand]

Re: Buying vs Selling Volumes

I have heard the term 'there are more buyers then sellers'. How's that fit in to your equation?

And can you give me example of 'there are more buyers then sellers' when this can occur?

Go back to my apple example from the other thread. 1 farmer sells 100 apples to 100 buyers who bought 1 apple each.

So only 1 seller and 100 buyers but still number of XYZ sold = XYZ bought.

 

[Trembling Hand]

Re: Buying vs Selling Volumes

If you are referring to market depth screen I have attached a screen shot of BHP.

what it is is a look a the current orders sitting in the market. As you can see at that instant there was more orders for shares to sell (40,920) in the 5 price levels above the last trade than there was buy (25,723) orders below the last trade. But that means nothing.

 

[motorway]

Re: Buying vs Selling Volumes

Go back to my apple example from the other thread. 1 farmer sells 100 apples to 100 buyers who bought 1 apple each.

So only 1 seller and 100 buyers but still number of XYZ sold = XYZ bought.

But then there will still another 100 buyers
who urgently wanted apples too

This farmer had sold all his apples

But

They were willing to pay a higher price
such that a farmer from interstate shipped his apples over

and this lot of apples sold at a much higher price compared to the first lot

So price in the end reveals
a lot of things about the volume --->about the buyers and sellers

All volume is a buy and sell
price movement tells you which was absorbed



Key --->always look for absorption


motorway

 

[tech/a]

Re: Buying vs Selling Volumes

market depths mean squat in my view UNLESS on the top lines , and even then they only a rough guide as most of the frantic actions comes from left field and not in the depths at all

only my opinion

Most sence Ive seen you make.

M/W just makes sence.

 

[skyQuake]

Re: Buying vs Selling Volumes

All volume is a buy and sell
price movement tells you which was absorbed



Key --->always look for absorption


motorway

Care to elaborate on the absorption bit? ta

 

[Timmy]

Re: Buying vs Selling Volumes

Tech - no fighting pls.

 

[Timmy]

Re: Buying vs Selling Volumes

Care to elaborate on the absorption bit? ta

Yes please Motorway?

 

[nunthewiser]

Re: Buying vs Selling Volumes

removed last post as bored with the drama

 

[Trembling Hand]

Re: Buying vs Selling Volumes

market depths mean squat in my view UNLESS on the top lines , and even then they only a rough guide as most of the frantic actions comes from left field and not in the depths at all

only my opinion

Of course lots to counter that. Just not in retail land.

Tech will never agree but if he cannot do it its not possible.

 

[nunthewiser]

Re: Buying vs Selling Volumes

Of course lots to counter that. Just not in retail land.

Tech will never agree but if he cannot to it its not possible.

yep ..... the old days of the "u boat " parked either side of the depths doing the shuffle have kind of fallen by the wayside ....... still see on occasion the odd mighty big players parking either side and pushing it where they want but not as often as in the past

on the last bit i make no comment

 

[Trembling Hand]

Re: Buying vs Selling Volumes

yep ..... the old days of the "u boat " parked either side of the depths doing the shuffle have kind of fallen by the wayside ....... still see on occasion the odd mighty big players parking either side and pushing it where they want but not as often as in the past

I forget the exact figures but more than 50% of the worlds futs are executed through a price ladder like the one I have above. Why? because it provides an edge.

Most high frequency futs traders spend 90% of their time looking at a DOM? Why? Because they see patterns develop that most retail punters hope to see in a chart after it occurs.

I tried to show something of that edge in my scalping thread and of course someone came up with the "slight expectancy" line. If someone could show me a good expectancy where the average loss was a fraction higher than the cost of brokerage I would be very interested.

until then the no edge in DOM = I cannot so no one can.

 

[nunthewiser]

Re: Buying vs Selling Volumes

I forget the exact figures but more than 50% of the worlds futs are executed through a price ladder like the one I have above. Why? because it provides an edge.

Most high frequency futs traders spend 90% of their time looking at a DOM? Why? Because they see patterns develop that most retail punters hope to see in a chart after it occurs.

I tried to show something of that edge in my scalping thread and of course someone came up with the "slight expectancy" line. If someone could show me a good expectancy where the average loss was a fraction higher than the cost of brokerage I would be very interested.

until then the no edge in DOM = I cannot so no one can.

i do not trade futures so cannot comment ...... definately not disagreeing with what you saying

merely pointing out my observations on my trading and watching of various ASX listed stocks

have seen your threads and DOM useage and yes can see how it works for you and those that CAN read it

 

[skyQuake]

Re: Buying vs Selling Volumes

I forget the exact figures but more than 50% of the worlds futs are executed through a price ladder like the one I have above. Why? because it provides an edge.

Most high frequency futs traders spend 90% of their time looking at a DOM? Why? Because they see patterns develop that most retail punters hope to see in a chart after it occurs.

How about the algos? Would have thought algos don't use price ladder to execute.

I tried to show something of that edge in my scalping thread and of course someone came up with the "slight expectancy" line. If someone could show me a good expectancy where the average loss was a fraction higher than the cost of brokerage I would be very interested.

until then the no edge in DOM = I cannot so no one can.

Do you mean an edge in scalping with charts??

 

[tech/a]

Re: Buying vs Selling Volumes

I forget the exact figures but more than 50% of the worlds futs are executed through a price ladder like the one I have above. Why? because it provides an edge.

Most high frequency futs traders spend 90% of their time looking at a DOM? Why? Because they see patterns develop that most retail punters hope to see in a chart after it occurs.

I tried to show something of that edge in my scalping thread and of course someone came up with the "slight expectancy" line. If someone could show me a good expectancy where the average loss was a fraction higher than the cost of brokerage I would be very interested.

until then the no edge in DOM = I cannot so no one can.

So
Explain this.
90% trade by looking at DOM
That means 90% of trades dont appear in DOM
They just fly in from Cyberspace.
If 90% of volume comes outside of DOM
how then can you explain an edge.

Your not placing your order in DOM
The large traders if they did place their orders in DOM wouldnt be telegraphing their intention.

Sure there are successful traders scalping but there are many many disasters as well.

I'm not against it just not into Psycho Trading.

 

[Trembling Hand]

Re: Buying vs Selling Volumes

How about the algos? Would have thought algos don't use price ladder to execute.

Sorry that should of said discretionary trades.

Do you mean an edge in scalping with charts??

No sorry poorly worded. I meant if there was no edge how would you explain the size of the loss being not much more than the cost of brokerage. So I would love to see the average loss of a large expectancy system, losses would be winners

 

[Trembling Hand]

Re: Buying vs Selling Volumes

So
Explain this.
90% trade by looking at DOM
That means 90% of trades dont appear in DOM
They just fly in from Cyberspace.
If 90% of volume comes outside of DOM
how then can you explain an edge.

Two things Tech. Where the fark did you get 90% from.

And this is the big one to get into your Muppet brain again!!

Who said that those that can get an edge from DOM take it from the crap thats sitting in it?? Get this in your brain now. For any 1 transaction to occur 50% has to be sitting in the DOM and the OTHER 50% has to hit whats already in the DOM. Its the later that scalpers read.

Just like any sentiment it has a used by date.