The ICICIDirect site constantly shows offer and bid quantities for a share . Now, I've seen that for some stocks the offer quantity constantly keeps at 5-7 times bid quantity throughout the day. The volume itself is also quite high. (yes bank has followed this trend last 2 days, there were other too).
Given this, one would generally expect the price of this stock to keep falling throughout the day.
However, there are times when the price actually goes up by about 2-3% at times and even at the end of the day finish at lot higher than the low, despite the offer quantity always being 6 times the bid quantity.
How does that happen?
Or am I miss-interpreting the meaning of offer and bid quantities shown by the website?
PS-
Following the above logic with SMA crossover has so far reaped good gains, but only because the price never shot up by a very large margin within 5-10 minutes while I was following. However, I have seen it do that as well.
Given this, one would generally expect the price of this stock to keep falling throughout the day.
However, there are times when the price actually goes up by about 2-3% at times and even at the end of the day finish at lot higher than the low, despite the offer quantity always being 6 times the bid quantity.
How does that happen?
Or am I miss-interpreting the meaning of offer and bid quantities shown by the website?
PS-
Following the above logic with SMA crossover has so far reaped good gains, but only because the price never shot up by a very large margin within 5-10 minutes while I was following. However, I have seen it do that as well.