please explain

tterrob
16 Oct '12

Why is it that when there are more buys than sells that the share price can fall & visa versa. Any help would be welcome. Thanks Novice.

moosh
16 Oct '12

just think 'us' and 'them'. 'us' being PIs, and 'them' being MM-worked big orders. it seems to work for me.

so if sp goes up on more PI sells than buys, then i read that as MMs having buys from 'them' to fill and need 'us' to sell to fill them. vice versa for sp going down on buys.

moosh
16 Oct '12

if anything, read and react to wot the market makers (MMs) are doing and not wot PIs are telling you.

moosh
18 Oct '12

http://en.wikipedia.org/wiki/Money_flow_index

if the buy/sell ratio confuses me, i like to then look at money flow direction to see if that helps me figure out wot's going on.

Del44
16 Dec '12

Or .....on a very simple footing...I may phone my broker up to sell 1 million shares in company x... The normal market size (NMS) may only be 50,000 shares in company x....
It may take my broker quite a while to execute this order and other mms may get wind of a large order coming on the market.. The sp moves down perhaps slowly and buyers come out.. So you may have a lot more buys then sells but the buying price will be going lower each time.....If the other mms feel the over hang is still there, there will be no reason to move the bid price higher...

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