Getting closer to price and volume

[rocky9281]

Best source of help for this will be Amibroker persons. I don't use it but can give my interpretation here..

Trade 1 - At 09:15:37, bid was 33.2, ask was 34. Trade done at 34 i.e. it hit the ask. 200 qty was traded at 34.

Trade 2 - At 09:15:38, bid was 32.5, ask was 33.9 Trade done at 32.5 i.e. it hit the bid. 950 qty was traded at 32.5. I think, after executing 900 qty, there are still 550 qty is waiting at 32.5 bid.

I will reflect this info in this format.. and that's how it looks in good t&S platform.

09:15:45 5835.00 1850
09:15:43 5834.00 100 ??? no ask price info? is it data error ?
09:15:42 5834.10 50 ??? trade done between bid and ask
09:15:41 5834.00 1450
09:15:40 5833.90 1100
09:15:39 5834.00 700
09:15:38 5832.50 900
09:15:37 5834.00 200

i.e. using colour to indicate if trade was done at bid (red) or ask (green).

This T&S display is certainly hard to read - lots of info that is just crap. (why do I need to know that I am trading on NFO).

all the best.

From the way you interpreted the trades,it appears that while you were concerned about a particular trade, you are referring to the bid and ask entries above it (While I was looking at the bid and ask below it-coz I felt that these are the latest values as they were printed before the trade was printed).

Why are you referring to the "bid" and "ask" entries that are ABOVE the "trade" entry? Is this because they are entitled with the same timestamp (which maybe the mistake I was doing by looking below the trade)?

Secondly,in the format that you used to display the trades in red and green, there was no information about the latest bid and ask quotes.

Should I remove all the bid and ask quotes and adjust the tape so that it prints ONLY THE TRADES with red and green color? Won't that create any problem (just curious to know how do you do it personally)?

 

[rocky9281]

Attachments

 

[rocky9281]

Different price and volume combinations in time and sales window

Some possible price and volume combinations in time and sales window are:

1. High volume trading going off-both in bid and ask, with intervening small/medium trades in both bid and ask.I don't think this pattern should be ignored just because it is indeterminate as both bid and ask sides are traded heavily, but should be watched closely because the high volumes indicates professionals are participating.

2. High volume trading going off in bid,not a single trade is of small/medium volume.Also, not a single trade going on in the ask. (vice versa)

3. High volume trading going off in bid.Along with that,small/medium volume trades going off at ask. (vice versa)

4. Large number of small/medium sized trades going off at bid.None of the trades is of high volume.May not seem to be professional activity,but at the end of the day the summation of the volume of trades at bid at that price level comes out to be very high.

What does each of the above four combinations indicate, and hence, what the tape reader should do when he sees them in his time and sales?

 

[rocky9281]

Complete idiot's trading system

I have been following this setup for past 1 month and I proudly say that I am having very few losing days. In fact, I am making money most of the days.
I love to call this Complete idiot's trading system because it doesn't involve any kind of analysis .

Here are the steps:
1. Find an instrument that has consistent record of closing far away from the opening price(either upside or downside), i.e a volatile one. I am using Infosys right now.

2. After the market opens , enter with buy (or sell) and maintain a very close reversal point. That is, suppose you bought at 2815, then you maintain a reversal point of 2810. Your motto is to stay long above 2810 and short below 2810.

At the end of the day, you will make a good amount of money. Sounds stupid? try to paper trade and see the result.

Disadvantages of this system:
1. The stock may whipsaw the reversal point several times, thus you will lose a lot during those times. This is the only disadvantage of this trading system.
On other days, you can be right just after 1-2(maximum) whipsaws only

2.The other disadvantage is not only for this system, its a general one for any system, which is , you wont make any money(or even lose money) on days when the stock doesn't give rise to any kind of trend and ends within the trading range.