Buy and sell orders...

When you look at the buy and sell orders for a particular stock, what does the amount for the number of buy and sell orders signify ? What is the significance of volume for those particular buy and sell orders ?

Thanks.
 
Quote from fogut:

When you look at the buy and sell orders for a particular stock, what does the amount for the number of buy and sell orders signify ? What is the significance of volume for those particular buy and sell orders ?

Thanks.




Buy and sell orders move the stocks and the markets. More buyers than sellers the stock will go up. Got it?
 
Quote from traderpro:

More buyers than sellers......

That's not accurate. You're assuming that everybody is trading with the same position size. One trader wanting to "move" one-million shares can overwhelm many other traders looking to trade only 500 shares at a time. It's better to say that aggressive buying/selling moves markets.
 
How helpful is the volume to determine the short term direction of the stock ? If you see the volume in sell orders outweigh the volume in buy orders, can you assume it is likely to go down in the short term ?

Thanks much.
 
Quote from nazzdack:

That's not accurate. You're assuming that everybody is trading with the same position size. One trader wanting to "move" one-million shares can overwhelm many other traders looking to trade only 500 shares at a time. It's better to say that aggressive buying/selling moves markets.


You have assumed, more buyers than sellers will move markets or stocks up. Plain and simple. I didn't mention size amount.
 
Quote from fogut:

How helpful is the volume to determine the short term direction of the stock ? If you see the volume in sell orders outweigh the volume in buy orders, can you assume it is likely to go down in the short term ?

Thanks much.

Glue eyes to screen for a year and you can answer your own question. I don't know your circumstance but I found it worth it.
 
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