So -- I have my own ideas about how to interpret large bid
and ask blocks when I am watching an NYSE intraday.
I was hoping that some of you could contribute some additional
knowledge...
I call those big blocks sheep herders.
When you see a big block you have two choices:
1) front-run it.
or
2) assume the specialist is just holding the market at a
price and ignore it.
I have seen case 2 unfold in a number of ways... a few examples:
Sometimes the big block appears and disappears and
reappears over and over - giving pressure in one direction.
Sometimes the big block holds the market off -- prices reverse
and then another appears in the opposite direction.
Sometimes the big block gets blown out (you see it disappear
and a similar sized block(s) on T&S)
Sometimes it appears to get blown out and reappears.
Sometimes it just goes away.
I keep a monitor of bid/ask blocks over a certain size which are
color coded and I've noticed there will typically be a dominant
color for the day. This color may or may not jibe with the
prevailing price direction for the day.
So -- has anyone noticed a tendency or predictive pattern
with respect to these big blocks? or have a certain philosophy
on these sheep herders?
Thanks in advance
J
and ask blocks when I am watching an NYSE intraday.
I was hoping that some of you could contribute some additional
knowledge...
I call those big blocks sheep herders.
When you see a big block you have two choices:
1) front-run it.
or
2) assume the specialist is just holding the market at a
price and ignore it.
I have seen case 2 unfold in a number of ways... a few examples:
Sometimes the big block appears and disappears and
reappears over and over - giving pressure in one direction.
Sometimes the big block holds the market off -- prices reverse
and then another appears in the opposite direction.
Sometimes the big block gets blown out (you see it disappear
and a similar sized block(s) on T&S)
Sometimes it appears to get blown out and reappears.
Sometimes it just goes away.
I keep a monitor of bid/ask blocks over a certain size which are
color coded and I've noticed there will typically be a dominant
color for the day. This color may or may not jibe with the
prevailing price direction for the day.
So -- has anyone noticed a tendency or predictive pattern
with respect to these big blocks? or have a certain philosophy
on these sheep herders?
Thanks in advance
J