Bid ask volume analysis

How to understand & factor in the bid ask volume in our day trading?
For example: in the attached chart there are five times more ask volume but stock price not going up. Why is this?

As per my understanding, most of the algo traders, proprietary traders buy/sell at a specific price (i,e limit price ) .they will wait to reach the expecting price, usually they won’t enter at MKT price because they are dealing with high volume.

so you can’t take a decision based on the bid & ask volume.

In my experience , bid/ask volume is not much useful , taking your chart snap, as an example , in colored box of bid/sell volume , it clearly shows sellers are more than buyers , and if you look at volume & MACD selling is going on ( it seems big buyers are already bought in ) and is being reflecting on charts , probably most of the remaining sellers are day traders / short term traders . so may be this reason stock price is not going up. 579eee59


Hi high volume proprietary traders means more than how many lots in nifty

Bid ask is useful in OFT.
who said its not useful ?

start cumulating bids and asks in your mind for a price range
eg . 618-620 .
[if you cant do this in mind then bidask not useful for you. … or use some software like ninja]
decide then which side is dominant
Then Trade

this is 1 of the uses . many more advanced uses too.

Please could you explain what does OFT stand for?

OFT = Order Flow Trading

market depth doesn’t show you the actual data, because it hides the disclosed quantity.
while placing an order of 1000 qty if choose 500 as disclosed qty , in bids & ask u will see only the 500 qty at that defined price.
many big traders will do this…

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Yes, absolutely , i use market depth to only to see the price near my decided entry price & also for exit price . so i look at chart while entering & exiting particular stocks

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Not that many people can get analysis like this, some even avoid it. But you need to analyze almost everything in this market, especially your actions during and after trading.

Aint lose on this