Will you share your insights about how the book, of the Minidow future for example, works?
What I could see so far is that when we have an upmove, the tenth level of the ask is more crowded than the tenth level of the bid, contrary to what I was expecting.
I couldn't observe all the levels, but it seems that on the tenth level volume works as a magnet, "attracting" the price, higher or lower, rather than pushing it.
In other words, during a rise, the bigger volume (not intended here as executed trades) almost all of the time on the tenth level of the ask, and viceversa.
When the price doesn't move, it varies.
I don't know how all this could be useful in my trading, because I am not saying that when we have higher quantities on the tenth ask level, we start rising. I am only saying that when we rise we have higher quantities on the tenth ask.
Maybe one way of using this information is that when we see that during a rise the quantities on the tenth ask are decreasing (I mean the ration between the quantities of the bid10th/ask10th), the rise could come to a halt. And it does happen that way, but this doesn't exclude that such quantities will increase again and the rise will continue.
So I would like to learn some more about this, if anyone wants to share their views on this topic.
What I could see so far is that when we have an upmove, the tenth level of the ask is more crowded than the tenth level of the bid, contrary to what I was expecting.
I couldn't observe all the levels, but it seems that on the tenth level volume works as a magnet, "attracting" the price, higher or lower, rather than pushing it.
In other words, during a rise, the bigger volume (not intended here as executed trades) almost all of the time on the tenth level of the ask, and viceversa.
When the price doesn't move, it varies.
I don't know how all this could be useful in my trading, because I am not saying that when we have higher quantities on the tenth ask level, we start rising. I am only saying that when we rise we have higher quantities on the tenth ask.
Maybe one way of using this information is that when we see that during a rise the quantities on the tenth ask are decreasing (I mean the ration between the quantities of the bid10th/ask10th), the rise could come to a halt. And it does happen that way, but this doesn't exclude that such quantities will increase again and the rise will continue.
So I would like to learn some more about this, if anyone wants to share their views on this topic.