Large Bid Size

D

DataCruncher

When you see a large bid size for a stock, how do you know if that is a bullish signal or if it's just to fake you out?
Algorithms pulling bids at the last millisecond to allow it to drop further?
 
Quote from DataCruncher:

When you see a large bid size for a stock, how do you know if that is a bullish signal or if it's just to fake you out?
Algorithms pulling bids at the last millisecond to allow it to drop further?
More...

watch how it reacts to the order and see the time the order came in to see if the market already discounted it.
 
Whatever moderator moved this thread is an idiot. It was originally in "trading".

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According to ET's descriptions, this thread belong in "trading".
 
Quote from robbie380:

so we never got a definition of what the op meant by big size. do you mean a million? 500k?
More...

well first let's examine what happens in a situation like this:
I was watching MF Global this morning. Saw on Level 2 that there was a couple bids for small lots (under 500 shares) and then a couple cents under the best bid is a bid for 10,000 shares.
Although 10,000 isn't that much, it was a lot compared to the surrounding bids.

Is there any way to gain insight into whether this 10,000 bid will offer a little support until it's chewed through, or whether the bid will simply be moved down quickly once it's about to get hit?
 
see if they hit the bid and if the bid then drops,its meaningless. if everyone starts taking the offer in fron of the bid and the bid goes up,its time to buy with a stop just below that large bid.
 
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