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

To: Dan Clark who wrote (7693)	5/19/2000 7:49:00 PM
From: wayne	Read Replies (1) \| Respond to of 17977

Hi Dan You wrote.... ... 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., One can both buy or sell at either Ask or Bid. When we see a trade at Ask we do not know if it is a limit order (which probably would be to sell) or if it is a market order (probably to buy). The question is this, for any given time period, are there more limit orders going off at, say Bid, than market orders? If so, I would say there is buying pressure. This is the problem, is a trade entered as a market or limit order? No way to tell. Therefore, indicators (QTIN) that try to measure buying/selling pressure at the tick level by comparing trades with bid/ask will fail.