how can green candles form even though seller/buyers ratio is more than 2

how can green candles form even though seller/buyers ratio is more than 2. It means that sellers are more dominant. So how can a green candle form or how can LTP go up?

Total buy and sell quantities are misleading most of the time. It’s manipulated by algos.
Somedays back sell buy ratio was more than 10 in yesbank, still price was going up.

You can’t conclude meaning info from this ratio

2 Likes

Buyers and sellers quantity is almost irrelevant in predicting price direction. More sellers in market depth doesn’t mean that prices will go down. It doesn’t work that way.
There may be more sellers but prices can still go up, as those sellers want to sell at higher price not the current price. The buy and sell quantity shown in market depth is the quantity of total orders pending not just the best 5 buyers and sellers. This total quantity quantity can be easily manipulated. Even you can manipulate it.

Let’s understand it with brief example. Suppose a stock is trading at 1000 and there is 5000 buy quantity and 5000 sell quantity. Now I can easily put an order to sell 5000 shares at 1080. Now the sell quantity would be twice the buy quantity. But since, my order is very far away, it is currently irrelevant to determine direction of price.

P.S. - Don’t try this kinda manipulation at home, as sometimes, your very far seeming order can also be triggered due to sharp movement in price.

4 Likes