Hi ,
In below chart i can see there are more then double sell order still pricing is rising with high speed. Why does so?
Number of sellers doesn’t matter it’s the price at which they are selling matters, since for any trade to happen you need a buyer and seller so the number of buyer and sellers will be equal. Not all the sellers are selling at market price and not all the buyers are buying at Market price.
But more sellers are willing to sell ? Shouldnt it go down?
Why would seller ask for less price?
sorry ! i rephrased it
You Should Not Give More attention to Market Depth Untill You Have Something else to Support Market depth Data.
There is continuous Bulk Trade Going on in Many Stocks But it will not show in Market Depth.
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these are pending order, this data keep fluctuating throughout the day, whatever left at closing cancelled,
don’t pay much attention to this qty, your attention must be foced on your personal analysis
sometimes order are placed to create for bringing retailers, orders are placed at a price where they don’t get executed (only for manipulation).
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I have replied the same query earlier.The market depth is a contradictory subject.In my view as LHS are sellers/ writers and RHS are buyers, the price wud rise as in this case 2.91 lac vs 3.97 lac.When you combine with indicators, it works well.If you notice, RHS prices are in ascending order whereas in LHS decsending. In order to clear demand side , price wud rise.
Think about it , you will get answer.
Regards
Apart from everything that’s said above, keep in mind something very important: You only see what the Buyers/Selles want the public to see (via “Disclosed Qty”).
In the example below, a big bull might be ready to buy 10 million shares of RELINFRA while disclosing only 500 to general public. The 10 Mil will not show up in the “Bids”. Think about this- if you are going to buy that much in bulk would you like to publicize to everyone? No, right? That would only drive the price much higher and hence you harm yourself in the process.
Hope it makes sense…
Cheers!
Neha (from VRD Nation)
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In the above example, disclosed quantity cannot be 500. It has to be minimum 1,000,000. Disclosed quantity has to be at least 10% of overall quantity.
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Thanks for the correction, mac76 !
Cheers
Neha
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