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Non-Tech : Quote.com QCharts -- Ignore unavailable to you. Want to Upgrade?

To: wayne who wrote (7691)	5/19/2000 4:41:00 PM
From: Dan Clark	Read Replies (1) \| Respond to of 17977

Wayne, First, regarding Trin, compare it to the Tick... If the Tick is > 0 then there is buying pressure. If the Tick < 0 then we have selling pressure. With Trin (or QTrin) it is the opposite. I've forgotten the exact mid point (it's not 0), but higher Trin indicates selling pressure, the lower Trin indicates buying pressure. Trin (or QTrin) is the opposite of Tick. Second regarding bid vs ask trades, you are correct regarding a SINGLE trade. I.e., a single trade going off at the bid or the ask does not indicate selling or buying pressure. But the total trades in a given timeframe, DO indicate buying and selling pressure... Limit order trades going off of the Ask price indicate that the buyers raising their expectations to the Ask level. They are willing to buy at the offer (Ask price) with expectation that they stock price will go up. Limit order trades going off of the Bid indicate that Sellers are lowering their expectations to the Bid level. Note that buying and selling pressure does NOT mean the price WILL go up or down. It just means that the pressure is there for it to do so. If you have a good real-time charting system that charts the bids, asks and trades on one chart, watch what happens when trades start printing at or higher than the Ask, or at or lower than the Bid. Except when a MoMo or some big hitter is painting a single small trade way out of the bid/ask range, you'll typically see that the bid/ask will follow the direction of these trades. I think that most people use "painting" to refers to the situation where someone(probably a MoMo) enters an order for a large number of shares at or just below the bid, or at or just above the ask. To this painting definition, I add the situation where you see a single trade 1/2 to 3/4 points above the ask when the stock price is dropping or 1/2 to 3/4 points below the bid when the stock price is rising. I believe this is an attempt to slow or halt the bounce or sell-off. I watched this phenomenom on CIEN for the last 40 minutes of the day. CIEN dropped from 122 to 116. During its faster moves, someone executed a trade about every 20-30 seconds that was at least 1/2 point higher than the Ask. A few times trading slowed down. After a while, it seemed that most people ignored it. (I'm happy that I did - I took several nice scalps out of that 6 point move down. :) Regards, Dan.