Does this graph make sense for AAPL bid ask spread?

[jabowery]

I'm attempting to construct minute aggregated bid/ask spreads from the IEX TOPS data. To check my work I plotted AAPL to see if it makes sense. The green trace is ask, the orange is bid. As a cross-check I included a blue trace for close from the chart API.

Correct me if I'm wrong but what seems to be going on is people are coming in making market orders that spike the bid up and/or ask down, upon which the market maker(s) come(s) in to re-establish the spread -- usually doing so at the prior market-making price. Occasionally, if there are enough market orders on one side, the market maker will not return to the prior price but will adjust to a new market making baseline price.

 

[murray t turtle]

Correct me if I'm wrong but what seems to be going on is people are coming in making market orders that spike the bid up and/or ask down, upon which the market maker(s) come(s) in to re-establish the spread -- usually doing so at the prior market-making price. Occasionally, if there are enough market orders on one side, the market maker will not return to the prior price but will adjust to a............
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That sounds right.
Maybe a short term aapl trader can give a more detailed word.
I mostly use candlecharts, easy to spot gaps, especially when they are selling it hard/or buying a good uptrend.[You can probably read your line chart better than me, i see no time measure on it....]Just watching it briefly, noticed plenty of penny bid/ask spreads + prices hit. After hours widens to 2 or 3 cents/LOL.
Good question

 

[gertruderoberts]

Frankly, I avoid trading with market makers and because they can buy your shares for their own accounts and then flip them hours later to make personal profits. You may or may not make any profits.

 

[jillchambers]

Frankly, I avoid trading with market makers and because they can buy your shares for their own accounts and then flip them hours later to make personal profits. You may or may not make any profits.

 

[murray t turtle]

Frankly, I avoid trading with market makers and because they can buy your shares for their own accounts and then flip them hours later to make personal profits. You may or may not make any profits.

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I usually aim for much more than hours;
i did flip some meat on my BB-Q this week LOL, Certain exceptions apply in liquid markets..........................................................................................I do like / The Market Makers Edge, by Joshua Lukeman\6 month charts.
One elite trader got mad @ the idea of those 2[mm + .6 month candlecharts] in the same sentence/looked like he never read that book LOL