Ask-Bid Ratio... does this explanation make sense?

#1
Ask minus Bid:
A positive numbers represent more transactions occuring on ASK side than on BID side.
This in theory may mean more buying than selling, but in practice things are largely dependent on security traded. Esp. dark liquidity pools do not show in order books and may report trades to the tape several seconds later thus invalidating relationship between bid/ask and actual trade prices.
Shouldn't it read the other way around? I mean, if there are more orders on the ASK side and less on the BID side, doesn't it mean that there is more selling? The above is taken from the Amibroker README file. Can any of the experts clarify? Also what does "dark liquidity pools" mean?
Thanks in advance !!
 
#2
Shouldn't it read the other way around? I mean, if there are more orders on the ASK side and less on the BID side, doesn't it mean that there is more selling? The above is taken from the Amibroker README file. Can any of the experts clarify? Also what does "dark liquidity pools" mean?
Thanks in advance !!
dark liquidity refers to the trades done (generally by institutions) which are not visible to common traders.
in India it shall refer to block deals, which are not routed through the normal window and block deal must result in the delivery of the traded stocks and it can't be squared.
 

jlmalhotra

Active Member
#3
Volume Delta. Ask ,Bid & Traded vol based studies. Suggest downlad trial version of Market Delta if in case you r intrested in profiling the markets or Delta volume based studies
 

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