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Re: Dannyboy4 post# 56466

Monday, 01/23/2012 10:35:29 PM

Monday, January 23, 2012 10:35:29 PM

Post# of 94541
Reposting to make it more clear:

No, that's not how it works.

I'll make up a fake L2 in order to show how it works.


.01 = (start of day; neither buy nor sell) ............Shares traded
.011 + buy .........................................................50 ......B
.011 = buy .........................................................6500 ...B
.0105 - sell .......................................................7500 ...S
.009 - sell .........................................................911 .....S
.008 - sell .........................................................5000 ...S
.009 + buy ........................................................5000 ...B
.009 = buy .......................................................45000 ..B
.009 = buy ........................................................600 .....B
.009 = buy .......................................................4500 ....B
.015 + buy ......................................................18000 ...B
.028 + buy .....................................................14000 ...B
.027 - sell ......................................................1000 .....S
.027 = sell ....................................................15000 ....S
.015 - sell ....................................................4000 ......S
.016 + buy ....................................................... 2000 ...B
.015 - sell ....................................................4000 ......S
.0165 + buy ....................................................... 2000 ...B

It doesn't matter if it's at the ask, bid, or between the bid and ask. All that matters is if the transaction is above, below or equal with the previous transaction. That is what determines a buy or sell.

The total would be:
97,650 BUYS vs 37,411 SELLS