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Market Depth

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n2dave
    20-Aug-2010 16:12  
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Accumltn: When they are buying

Distribution: When they are selling.

They might be put fake queue sometime to on their opposite side to get what they want. Over here we must becareful  



ginting      ( Date: 17-Aug-2010 00:03) Posted:



Sometime big boys do accumulation or distribution? Can someone explain what does it mean?

 
 
keepinvest
    17-Aug-2010 00:35  
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no idea, maybe some else can help.
 
 
ginting
    17-Aug-2010 00:03  
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Sometime big boys do accumulation or distribution? Can someone explain what does it mean?
 

 
keepinvest
    13-Aug-2010 22:09  
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FCOT = Frasers Commercial Trust, FrasersComm (A48U).

What you said sounds like some traders are getting bored, so they find ways to get fun.



 
 
ginting
    13-Aug-2010 15:57  
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FCOT? Is it one of counters?

What about Time&Sales? Every time buyer popup, it's only 1 lot then follow with few lots for about 5 times then come buyer 1 lot again. These repeat again and again. How do you interprate it?



keepinvest      ( Date: 12-Aug-2010 21:59) Posted:

That depends. You have to also look at the liquidity. If the vol is not high compared to the queuing vol, then the counter won't move much. What you mentioned looks like FCOT, staying at a price without much movement.

 
 
keepinvest
    12-Aug-2010 21:59  
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That depends. You have to also look at the liquidity. If the vol is not high compared to the queuing vol, then the counter won't move much. What you mentioned looks like FCOT, staying at a price without much movement.
 

 
ginting
    12-Aug-2010 17:51  
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Sometime we can see on the bid column, 1st line small vol, and 2nd line is huge vol. Then on the other side offer column 1st line on top is about same as the 2nd line @bid column which is huge volume.

How do you inteprate it? Is there any speculation over there?



keepinvest      ( Date: 12-Aug-2010 13:58) Posted:



Market depth shows you a list of bid and ask prices, and the corresponding volume queuing for each bid or ask price. From the table, often you see at some low bid price there is a huge volume, and that indicates the support for the day. Likewise, a huge volume at some high ask price means resistance for the day.

Market depth is particularly useful during pre-open and pre-close sessions. You can cut queue by bidding higher or asking lower, but you need to tell where to cut by reading the market depth. Cutting queue for 1 cent may not mean a lot for $1 share, but it may mean 10% or 20% for a penny stock. Besides, it's important to read the market depth if you wish to unload at the opening after an overnight bad news.

You can find more information here (by SGX): Application of Market Phases and Algorithm

 
 
Isolator
    12-Aug-2010 14:20  
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Market Depth is to "smoke out" retail and newbies... lol... Smiley
 
 
keepinvest
    12-Aug-2010 14:15  
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Oh I need to say that cutting queue is very risky. Do it if you really know what you're doing. I think I had been 70% successful in cutting queue so far, but other times I got loaded for the higher bid price I placed.

Other players are cunning, don't be fool by what they offer in the market depth. They can withdraw in a split second just before the end of the session.
 
 
keepinvest
    12-Aug-2010 13:58  
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Market depth shows you a list of bid and ask prices, and the corresponding volume queuing for each bid or ask price. From the table, often you see at some low bid price there is a huge volume, and that indicates the support for the day. Likewise, a huge volume at some high ask price means resistance for the day.

Market depth is particularly useful during pre-open and pre-close sessions. You can cut queue by bidding higher or asking lower, but you need to tell where to cut by reading the market depth. Cutting queue for 1 cent may not mean a lot for $1 share, but it may mean 10% or 20% for a penny stock. Besides, it's important to read the market depth if you wish to unload at the opening after an overnight bad news.

You can find more information here (by SGX): Application of Market Phases and Algorithm
 

 
ginting
    12-Aug-2010 11:32  
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Can someone share here How to read market depth? As we know that some big boys always play with market depth, how do you read it?
 
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