rocky9281

Hello BlowFish, I am very much new to tape reading. Don't know what to study and what not to study. Please guide me to the following as you mentioned: 1. Market delta/ cumulative delta (I am confused whether you are favoring or against it. If you are against, I don't want to study that) 2. Please give me the Link to threads by a trader called Futurestrader71 3. Where can I download NoBSTrading?

When transactions occur at the ask price, there are two kinds of forces that play simultaneously.They are: 1. The LIMIT sell orders (consisting of the best ask), and 2. The MARKET buy orders (consisting of those orders that does all the buying from the best ask as mentioned in previous point). Please tell me whether I am correct up to here. At this stage,we interpret the transactions as the professional players are buying. What is the reason to think that the pros are buying here and not selling? In other words, what is the reason to think that the pros are the people who are owners of the market buy orders (point #2 mentioned above), instead of thinking that the pros are the owners of the limit sell orders (point #1 mentioned above)?

Last group of questions: 1.What can be inferred if we see trades going on (1)"above the ask/below the bid" AND (2)"inside-the-spread"? 2. What can be the future impact on the price due to trades going on (1)"above the ask/below the bid" AND (2)"inside-the-spread"?

Hello Blowfish, The way you described about inside trading,it appears to me that these kinds of orders are placed because the buyer wants to buy from ONLY a particular seller and vice versa. They have planned that no third party can take part in that trade. So the buyer and seller have pre-planned about the price, size and time of the trade and accordingly, they "meet secretly with each other and run away after the trade is complete". This is what I am feeling about inside trades. 1. Please correct me if I am wrong. 2. Is this inside-the-spread trading made by the pros? or normal retail traders?

Hello Blowfish, Thanks man. Can these same reasons be used to describe (1)trades below the bid and (2)trades inside the bid-ask spread?

:confused: Hello BlowFish, None of the ask quotes,having higher prices than the best ask, can be executed as long as the best ask is there.But still, we can see some trades go off "above the ask". How is that possible? :confused:

Hello $5DAW, I have broken down your reply into 2 parts. For first part, I want to say that, Q2,Q4,Q6 (of post 18) entirely criticizes Q1,Q2,Q3 (of post 20). For example, Until and unless Ask side of 80 @ 100.10 is exhausted, 70 @ 100.15 won't be traded.(Q2 post18) clearing 70@100.15 (while 80@100.10 is still there) in the ask.(Q2 post 20). Similar controversies exist with the other 2 pairs. I cant figure out on what basis you are saying all of them are correct. One group completely criticizes the other. For second part,I cannot relate HFtraders/short lived IOC orders with trades below bid, above ask, inside trades etc. Can you explain them with more details please? Thanks

Thanks BlowFish, Looking at the order book above (within the quoted text), I want to clear few more doubts related to Trades above the ask, below the bid and inside the bid-ask spread. Below, I provide 3 examples to show what do I understand by: Q1.Example of trade below the bid:-Clearing 1900@99.8 (while 50@99.95 is still there) in the bid.Am I correct? Q2.Example of trade above the ask:-clearing 70@100.15 (while 80@100.10 is still there) in the ask.Am I correct? Q3.Example of trade inside the bid-ask spread:-Executing trades like 50@100.05 (while 99.95 is best bid and 100.10 is best ask).Am I correct? If one or more of the above examples are incorrect,please explain what is trade below bid,above ask and between bid and ask from the hypothetical order book as above.

I want to know a few things about how the orders from the orderbook are executed and how are they printed on the tape. Lets look at the hypothetical orderbook here- BidaaaaaaaaaaaaaaaaaaAsk 50@99.95aaaaaaaaa80@100.10 50@99.90aaaaaaaaa70@100.15 1900@99.80aaaaaaa300@100.25 1000@99.70aaaaaaa50@100.30 500@99.65aaaaaaaa500@100.35 I wish to have a clear picture of some of the basics of order execution. Please help me by answering the following questions, with yes/no.. Q1. Any order to buy shares will invariably be directed to Ask side of 80 @ 100.10. Q2. Until and unless Ask side of 80 @ 100.10 is exhausted, 70 @ 100.15 won't be traded. Q3. Any order to sell shares will invariably be directed to Bid side of 50 @ 99.95. Q4. Until and unless Bid side of 50 @ 99.95 is exhausted, 50 @ 99.90 won't be traded. Q5. The region between Bid 50 @ 99.95 and Ask 80 @ 100.10 is called the inside region. Q6. There is no bid AND/OR ask quote in the inside region.

But look at trade #2 - it occurred at 5832.5..neither of the bid or the ask PRECEDING the trade showed this value. BUT, the bid that was printed AFTER the trade had this value. Now I am confused whether to concentrate on the bids and asks printed before the trade or after the trade. (Another thing to note, the bids and asks printed after the trades are having same time stamp as the trade itself, whereas the preceding ones are not! ) Please guide me

Hello BlowFish, I am still confused on how to understand whether a particular trade occurred at the bid or the ask. I have attached a new screenshot . Here, there are 8 entries of "trade". I have marked them 1 through 8. Please tell once again how do I classify these trades as "at bid" or "at ask". Please tell me the logic used to differentiate them. Sorry to irritate you.

That was completely new knowledge for me.Thanks so much!!!! 1. From the way you describe it, let me analyze the topmost 2 lines of the T&S. The 2nd line from the top actually means that there are 808 shares to be bought at 1150.20. So this is a part of the limit order book...nothing else. Am I correct? 2. The 1st line says that, out of the 808 shares to be bought, 4 were bought (This is an actual trade at 1150.20-bid bcoz the previous line shows 1150.20-bid). Thus, 808-4=804 is the current size of the best bid now.(to be shown when the next line will be added) Am I correct? 3. What is "BB"? Is it best bid? 4. Why isn't there a single entry about the ask? Is this because there is no order being added or removed from the ask side of the order book?

Hi BlowFish .Thanks again. 1. I have seen three kinds of entries in a T&S. They are "bid" , "ask" and "trade". As far as I know, Bid is trade occurring at best bid,vice versa for ask. But What is "trade"? This time, please enlighten me about the entries marked as "Trade".What does these lines marked as "trade" mean? 2. Lastly, how did you know that they occurred at best bid?

Hi BlowFish, how did you arrive at this "200" figure? Another thing, can you please direct me to resources (books,ebooks,websites etc.) where I can learn about how to trade with Time and sales ?

Here I am posting a T&S screenshot.Assuming that the transactions are going on live right now,please let me know about what can inferred from this T&S as the current transactions are going. Does this screenshot prompts us to buy immediately, sell immediately or do nothing or something else?

Please tell me whether trading FnO with its own Time and sales is sufficient or not

It "appears" that the price of a future or option is derived from the price of its underlying. In turn, price of the underlying is determined by supply demand conditions prevailing in it. So, if we can understand supply/demand conditions of the underlying, we will be able to gauge future direction of the future or option. Do we need anything more to understand FnO? Do they have their own supply-demand game? How can Time and Sales of FnO help if FnO is priced according to the respective underlying ONLY, and not because of its own supply-demand conditions?