Two proposals about BID/OFFER and price n volume...

[priyanvada]

1. Offer quantity/Bid Quantity: -

Please see a scene sequence, I have frequently encountered from last one month...


Scene 1: - UNITECH Stock : -

An hour has passed...for a long while,bo BIG movement in my favorite stock...things are in dynamic balance ... I mean Bid Price & Quantity are showing very similarity to Offer Price & Quantity!...My mind is tired and saying Ohh Priyu...had you slept for that much amount of time, it would have been much productive work ,,, and suddenly!

Scene 2 : - UNITECH Stock : -

Price has gone down a bit ... but look at the offer!...What is that?...Has a Big Bull entered into the scene??!...so now what??...should I jump In??? Comeon Jump priyu ... Just Jump In!!!...but suddenly...

 

[priyanvada]

Scene 3 : - UNITECH Stock : -

A proxy bull like me enters in...My mind says "Ohh No ... whats that??...where is my Big Bull?"...It is Better I should stay away ... these figures are so unreliable!...but few seconds latter...


Scene 4 : - UNITECH Stock : -

My BIG bull has entered again & has got angry probably this time... and entered once again...by the way bear (Offer side) is also getting BIGGER now...Now What???

 

[priyanvada]

Scene 5 : - UNITECH Stock : -

Again a proxy bull gets in with more Bid price!...I am uneasy... what is happening??...and now......

Scene 6 : - UNITECH Stock : -

Ohh my God! .. It s a BIG bull again ...and such a powerful bear...What a fight!!...such a price tension too!!...Now what??

 

[priyanvada]

Scene 7 : - UNITECH Stock : -

Watson! You see that?! ... What a BIG bear now...Bear is winning...So now what is written ahead??

Scene 8 : - UNITECH Stock : -

Things are again falling back to in place now I am still uneasy waiting for some drama to happenbut alas

 

[priyanvada]

Scene 9 : - UNITECH Stock : -

Things have fallen back into dynamic balance again!...The dashboard readings have become again like that in Scene 1 in terms of bid and offer quantity Big Bulls and Bears are gone to sleep again! only price is changed 1%(!) up in the meantimeand I am only watching this drama & just totally frozen!
This price now will hardly move a BIG for next hour or till day end... I have came out of this spellbound...and back into my senses...thinking "Ohh, this was such a wasted opportunity!...those proxy bulls just confused me... the BIG bull was always hiding behind them!!!... and I was just a mere spectator


Same sequence always happens in downfall to in mirror fashion

 

[priyanvada]

2. Offer price and Bid price: -

I can show a sequence like above when there happens a SUSTAINED BIG difference between bid price and offer price which results in sudden and BIG upside move or downside fall depending upon the price action there may / may not support by Bid volume / Offer Volume in this type of price change Only sudden price tension and yyyyooooo there occurs a BIG price move!!!


Conclusion: - What I concluded from this experience is

1. While day trading many times it goes, first REAL BIG change in BID/ OFFER quantity then a DRAMA to keep you puzzled, and in very less time the price moves up or down significantly!

2. While day trading many times it goes, first REAL BIG SUSTAINED DIFFERENCE BID PRICE and OFFER PRICE then a DRAMA to keep you puzzled, and in very less time the price moves up or down significantly! There may be or may not be an indicative or supporting behaviour in case of BID/OFFER volume! but still there is occurrence of significant price change!

3. There may be another smooth version of price increase, where both BID and OFFER variables always remain in a dynamic balanceand one never gets any signal from instantaneous BID/OFFER price and volume signalsSuch a silent movement remains undetected if rate of price change is relatively slow!

4. So What I learned till now as only trade price and trade volume as first fresh signals of a change is seeming to me less true instead BID/OFFER price and volume ARE the MOST FRESH SIGNALS a day traders gets from market!

 

[priyanvada]

Proposals: -

The traditional system as shown in above UNITECHs example is the current system to show up the BID and OFFER happenings which I know The system uses a color indicator i.e. when something goes up they will make it blue or green and something goes down they will make it red

The benefit of this is you can FIT many stocks in a single excel like table and keep a watch on all of them ,,, in addition the due to color indication for the relevant cell observer can easily get if it is a bullish or bearish signal for the very few moments ahead

Day traders (in my opinion) prefer mostly heavily traded stocks for a safe, reliable and quick day trading So a panel having loaded with such heavily traded stocks is always full of color combinations and I really wonder how a day trader copes with those figures simultaneously! because from one month I am trying myself to get adapted to the situation but there has been no improvement It is the toughest job to be alert for the prices of 15 stocks simultaneouslySo this simultaneous monitoring of the no. of stock variables is the first drawback of the system

Second drawback is this panel shows up only instantaneous prices So you never no whether a BIG Bull has arrived which is Hiding behind proxy bulls which run just a step ahead of BIG bullthings are instantaneousthere is NO history writing for BID and OFFER variables! So if you are looking at some other stock you WILL miss the BIG Bull and when price has moved, until you place an order it is TOO late!

Third drawback is reading the numbers It always confuses when I see 11113 and have to decide it is 1 lack or 11 thousand and something So for me so many numbers (15x4=60) and there realisation anyway this may be subjective drawback but still a DRAWBACK!

So In my opinion both BID/OFFER variables have not been credited enough by our traditional systems which shows them.So

1.Proposal about BID/OFFER volume : -

I suggest that below the traded volume in opposite direction (negative Y axis) we can have a space for BID/OFFER volume bars Buyers are the boss of the market, so BID volume would be made green and OFFER volume would be made redAnother color should be used ---say back or blue--- which will show consumption If BID volume is 20% more than OFFER volume we will see a green bar consumed 80% by a blue bar and in reverse case we will see a RED bar consumed by blue bar with given amount. A third color is necessary since when BID & OFFER will be the same then which color to show?
This was we will NEVER miss a hiding BIG bull or / BIG bear since we will have everything thing logged into a bar chart! And a day trader can always visually detect a big depth of green signal without much consumption by blue bar as a bullish signal and reverse will also be true for bearish signal!
A SIMPLE imaginary bar chart should look as below

 

[priyanvada]

2.proposal about BID/OFFER price : -

here also the difference between BID price and Offer price is the KEY SIGNAL so this can be/should be logged and plotted as a line chart with X axis as time and Y axis as difference between BID price and OFFER price It would look just like our stock price and time chart ...

It would look like a positive oscillator graph like below this way a day trader wont miss a price tension , which would mean an another KEY signal for price change!

Only problem in above case I see is that of viewing the charts simultaneously! My keyboards ALT + TAB keyboard keys need to be in shape and well lubricate for this


Please correct me if I am wrong here anywhere / everywhere! Since this is mere 1 month experiential suggestion of a beginner!


Regards,
priyanvada

 

[priyanvada]

Not a single reply till now

So I got my lesson ...
I won't post such stupid things here from now on.



Good Night and regards,
priyanvada

 

[sktneer]

Good analysis.........it will certainly help others to understand the market movement.
Thanks for your post.