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Gold/Mining/Energy : Daytrading Canadian stocks in Realtime -- Ignore unavailable to you. Want to Upgrade?

To: Ward Nicholson who wrote (23811)	11/7/1999 6:45:00 PM
From: The Devil Dog	Respond to of 62348

All very interesting Ward, thankyou for remembering to post your thoughts. Gonna work on some response. Hard to discuss MD when looking at static price eg. when it requires dynamic real time representation to point out intricacies. I shall do my best to expand some thoughts. Best regards WB

To: Ward Nicholson who wrote (23811)	11/7/1999 6:59:00 PM
From: the Chief	Respond to of 62348

Excellent explanation Ward. I think there is something to be said about the transitions from strong to weak or weak to strong as well. As you have mentioned you try to buy when depth is weak, which is also the highest point of "fear". Or conversely sell when depth is strong , which is the highest point of greed. I think most people tend to try to follow those trigger points but tend to wait for the transition period. The transition period is a very narrow band that follows the weak market depth with slowly increasing strength. Or, the period where strength begins to disappear. Emotionally, the transition period buy/sell is easier to handle. The unfortunate thing is that it also ends up being the narrowest in the bandwidth of opportunity, because reversals happen quickly. To expediate the opportunity of buying/selling in the transition "zone" I stopped using all Internet placed orders and reverted to phone orders using a preferred customer line. This process of catching the transition period increased my confidence and also allowed me the "dreaded" market buy. The market buy was a product of the stock stalling in the transition period and then reversing, the reversal or "the sense of the reversal" allowed me to be more aggressive and step in with the market buy! So using your example. When Weak depth indicates the bottom, and the transition period, is that point in which the stock neither moves up or down, stalls and is building strength, then I place the market buy. Ultimately I think they arrive at the same consequence, I just use less Maalox<gggg> the Chief

To: Ward Nicholson who wrote (23811)	11/7/1999 8:32:00 PM
From: keith massey	Read Replies (1) \| Respond to of 62348

Ward Great post. I don't have time for a long post but I will say that I find the combination of charting and dynamic market depth very important. For example, as the price is falling and approaches a strong resistance I watch the market depth very closely for signs that it will either bounce or crash and burn. As it is falling it is normally weak or mixed and the bid is being hit. As it gets right to the resistance point I would expect the depth to initial look weak. If it is going to bounce the depth will get strong very fast as bids fill in and you will see trades going through between the bid and ask as soon as they hit the boards. If strong offers show up and start getting hit and then the offers look weak I expect the resistance point to hold and will get in with a stop just below the last low (resistance point). Just my two sense but I will add more later. Best Regards KETIH

To: Ward Nicholson who wrote (23811)	11/7/1999 8:49:00 PM
From: Swami	Read Replies (1) \| Respond to of 62348

Great post Ward, All I know is i was making more money BEFORE I got Market Depth and Stockwatch...meaning less i know better it is for my positions. But point well taken normal tendency is to buy on strong MD and sell on Weak MD. Best time to buy i agree will be when fear is rampant.(Weak MD). Only problem is too many Canadian stocks I have seen crash and burn after Weak MD's

To: Ward Nicholson who wrote (23811)	11/8/1999 8:21:00 PM
From: Vitalsigns	Read Replies (1) \| Respond to of 62348

Ward I appreciate the time you spent writing your post and would love to see more people actively discussing trading ideas after hours. I, myself, see market depth as a tool for finding out liquidity or support levels but I find that initiating a buy, or sell, based solely on wether it is weak or strong will cause me to lose money more often than not. I have seen the situation occur of which you describe in your post but I also see just as many times where a strong MD leads to further strength in the stock price. MD is great when buying or selling a large position as you can figure out ahead of time how much it will cause the stock to move and play accordingly. It is also good for watching institutions place fake support and resistance walls ,only to watch as they pull them away before the stock moves. One of its biggest weakness's is the fact that all you see are basic limit orders, and cannot see any special orders like All or nothing or Minimum lot fill Orders which institutions love to use to hide their orders.So until we can see MArket by Order Depth than we as retail investors are still at a major disadvantage against brokers and institutions who are able to ,(like the old saying "Play us like a fiddle") I hope this was helpful, It's been a long day for me and my eyes are beginning to feel a little heavy <gggg> Vitalsigns