The SnapQuote / market depth window for the selected scrip by pressing F6, by double clicking on the selected scrip or from the Quick order window in charts. The window gives the complete shot of the way the scrip is performing in the market on the day as well as at that particular point of time. The information like open, high, low, previous day close gives an indication how the scrip fared on that particular day and the top five bid/ask gives the indication about what kind of liquidity that scrip has in the market and at what price levels. This information will give better picture about the scrip to the user before taking position in that particular scrip.
1 Like
hElLO tRaDeR,
The process of analyzing market depth through bid / asks table traditionally was known as tape reading.
Nowadays, tape reading process by itself is not a reliable trading strategy.
You can instead use it as a final check point for deciding on your trade entry point and size.
The top 5 levels of bid and asks seen on your retail trading terminal has no sufficient data for making an informed trade decison.
To fully make use of this process, you need to have access to level 3 data of NSE realtime data which gives you upto 20 levels of bid and asks.
Moreover,
-
When a large order is placed with a disclosed quantity condition, the order size is not reflected on the market depth table.
-
With plenty of automated algos, let to roam freely on the exchange servers to buckle up the retail trader, the order data on this table mostly represents dummy orders that are modified or canceled just a microsecond before they are about to get executed, for the fun of trapping the retail traders to buy at high and sell at low.
3 Likes
thanks buddy, realy appreciate ur answer. Can u also tell me how we can practically apply it to our trading please?