Daytrading Canadian stocks in Realtime Message Board

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Gold/Mining/Energy : Daytrading Canadian stocks in Realtime

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To: Frankly Speaking who wrote (12200)	5/10/1999 10:27:00 PM
From: Rob Davis	Read Replies (1) of 62348

Hi Frankly, This question is better posed on the "Day trading in Canada" thread. Subject 22429 Since it is after-hours, I'll answer it here. Basically, when you see a very large block of bids at one price, this is considered the "bottom of the box". A very large block of asks at the same price is considered the "top of the box". These orders are generally placed by professional traders at the brokerage houses. The stock price generally floats around in between the bottom and top of the box, with the brokerage houses using this opportunity to collect/dump shares. If they've been collecting, they will raise the bottom of the box and perhaps remove the top. (if dumping, lower the top and remove/lower the bottom) The Chief can spot when a box is forming really well...obviously you need market depth to be able to see it. Just above the box bottom is a good place to put a bid in if you want shares and just below the top is a good place to put an ask if you're looking to sell. Box bottoms provide a large support level and box tops provide a complementary resistance level. Cheers, Rob

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