Market Depth Im sure we all have our views on it personally I try not to let it influence me too much and can be very misleading… Look at Nuh for example at close it sits at 58 buyers for 4 million units and 142 sellers for 14.85 million units. If you just look at the immediate 10 movements for buyers and sellers as commsec shows it actually tells a different story I did the maths and as per screen shot works out to be 39 buyers for 2651 million units and 24 sellers for 1961 million units…. the price rose over 6% today. This is more of a discussion piece I also believe the market depth may be skewed on the sell side due to more stop losses been set than profit limits….
Skye Kelley: Only one buyer lined up to pay over 8.1c tells you something aswell
Trinity Sutton: Its after market so bit distorted but thats all I had
Haley Wallace: Brendon you dont set stop losses on the sell side, you might set profit target sells. Imho depth is on relevant down to five levels, and is a great tool for giving excellent timing of entry for buying a stock, but dont look at depth pre market. And what is a profit limit?
Trinity Sutton: Pre market aside that is not my point. And if you dont set stop losses on the sell side where do you set it? My point was most of the depth in the numbers shown are far above or below the current market price so are near on irrelevant for a trader especially given that most big buys and sells are done at market price
Trinity Sutton: Profit limit probably not a term I just mean when u set a limit sell for profit taking
Lydia Mccarthy: You dont set stop losses until your target is reached and the condition is filled, they are a conditional sell order, say price falls 10% then you conditional sell order is trigger, your sell order is posted, not before.Im relatively new to the stock market, so its very possible im wrong, but this is what i understand to happen.
Alessandra Goodman: The market depth is the best for guidance intraday trading. Can be open manipulation with spoofing and algo trades… but a lot better than looking at a chart.
Riley Cross: Que?
Alessandra Goodman: Riley Cross: que? Not sure what you mean Don
Alondra Hanson: Spanish for what the fk
Riley Cross: SÃ
Riley Cross: Que es un algoritmo?Es no mean decision making process?Please excuse my mal usage of spanish punctuation
Riley Cross: I not your trading plan an algorithm?
Alondra Hanson: Mi español es jodidamente malo
Riley Cross: HeheheI had to look up jojidamente…not what i expected….lol
Alondra Hanson::
😂
Trinity Sutton: Yes market depth around the price is useful but the totals at the bottom are not very useful imo
Macie Mccarthy: They are just the top buyers and sellers that can fit in the displayRest buyers are below the lowest price seen
Trinity Sutton: I realise that I just dont think they are important as so far off current price
Alondra Hanson: Its a guide. If you base any decision chiefly on that stat its a problem.Almost all the info you need is on a chart.
Gabriella Barker: Ive set orders for millions of shares at 0.001, and set sells at multiples of current prices 😇 And if I can do it, lol, anyone can
Gunner Daniels: I was actually wondering if that is possible and you have answered my question. Does your brokerage ask you for proof of money before setting up such big order?
Trinity Sutton: Yes they do ask for proof I tried 2 days ago
Gabriella Barker: With mine at least yes. I dont know others. Although 5 million shares for example at 0.001 is not too much anyways
Juniper Byrd: 1 million shares at 0.001 is only $1000
Gunner Daniels: I just realised he said 0.001 i thought he said 0.01. Yea thats $1000.
Trinity Sutton: Well I tried a big order and I basically needed a deposit
Trinity Sutton: If seen prices steadily rise for months without the market depth even been close to in favour of the stock
Haley Wallace: very rare
Weston Morris: Market depth is everything. Its the final yes or no to me taking a position.
Valeria Ellis: I tend to agree but still deciding. Sometimes its misleading
Weston Morris: Pre and post market I ignore completely
Jude Warner: Melroy Coelho
Haley Wallace: If all you ever do is buy a break of resistance when there are twice and many buyers as sellers, wanting twice as much as offered, you will do well.
Riley Cross: Thanks Frank.Invaluable wisdom.
Trinity Sutton: Yes good sound advice