I have no interest in the prices of all the participants I just want to know there are a darn sight more buyers than sellers.When paying attention to the stack, which is mainly only if considering to enter or exit the trade, I ignore the numbers which are 20% or more away from the current price. It is after all, it is an auction and the prices outside the top 20% (or even 10% for one not moving much) are irrelevant because like in any auction, they are nowhere near the action.
When developing (not I, but our trading group) the algorithm to assess the market sentiment for, or momentum for, a stock at any point in time, it was obvious that the bottom 80% had very little effect on the results.
Sorry Ann, I may have confused you by mentioning the algorithm but it was during the process of developing it that the research was done regarding the usefulness or otherwise of the bid/ask stack.I have no interest in the prices of all the participants I just want to know there are a darn sight more buyers than sellers.
For instance, currently there are 459 buyers for 631,679 units and 293 sellers for 391,746 units for VUL. It is basic, it is not clever, it is not an algo it is simply just more folks in the buy queue than the sell queue. If it was in reverse, I would expect a fall in the price to follow. Very, very basic logic.
I feel I got what you were meaning. I am hearing you say looking at the stack is irrelevant as any genuine measure of price. I agree with that. The only price action that is relevant for me is what I am seeing on the chart. However, I believe a stock like STO currently with 422 buyers for 891,135 units and 790 sellers for 2,486,512 units is going to struggle a bit harder for a price rise in comparison with VUL, these are just my thoughts and observations over the years. This balance of course can change like the wind with some new information, it is purely the sentiment of the day.As you are happy with what you are dong I won't try to explain.
Depth is crucial, but we all know this can be manipulated. The first few lines in the buys and sells are what traders usually look at ( I see where country lad is coming from) Ann and country lad are both right.Yes, there are eskys and I like to devote a lot of time to each of them on an individual basis so that eventually I don't have to consciously consider them when I am looking at a trade. Such as volume that I am totally focused on at the moment, after 20+ years of trading, I now discover volume!Eventually, it will be a purely subconscious observation that will be seen but not seen, if that makes sense? In the short term, I focus and focus on it with total concentration until it is part of me. Then it just becomes a sort of intuitive absence of thought.
You may wish to say big money "willing" a stock up or down, I just call it plain old, after-hours, fundy market manipulation.
That's a very interesting aspect, I will have to pay a little more attention to that, thank you for sharing that info, appreciated it.
I tend to just glance and see the percentage of buyers to sellers on the day when I want to trade a particular stock.
It's important for me to break down the depth into price details and watch out for manipulators who will put stumbling blocks in place to trip us up.
All these years trading, and I still can't get it right all the time........so many hazards and we never stop learning
I know what you're saying, Ann. I get excited until I shoot myself in the foot.In reality, for me the only price that counts is the EOD and how very many times in the past have I seen a stock travelling nicely all day to then see some fundy or broker or whoever come in and define the whole day's trading with their pricing decision at 4:10:06pm and define the whole day with whatever their price may be. No one will ever convince me this is not blatant price manipulation. However, always looking on the bright side, I don't waste my time watching the market during the day anymore as I know all decisions are made 10 minutes after 4pm. So in essence what @Country Lad was saying is born out by this observation.
I live to learn, either from my own mistakes or from others who are kind enough to share their ideas and experiences. It gives me a real high when I find something new to play with.
The problem of turning dreams into reality is daunting...VUL under $6 ...
and another ...: ...:Chart update
I currently have some in the actively traded portfolio.I'm never going to buy this stock
Me too. I regret buying it now . The SMO in the Ukraine changed all the dynamics , and the US threatening China has made it even worse for Vulcan to make a buck.I currently have some in the actively traded portfolio.
Wondering why you'd never buy it? Not arguing, just curious to hear other perspectives.
In my case it's a purely mechanical trading system and any stock in the ASX300 is eligible if the numbers line up. This met the criteria so I bought some on 15th April and still holding at present. For the exit, nothing's told me to sell it yet but it will be sold, it's a trade not an investment.
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