RE: Buys v Sells24 Jun 2021 14:24
The LSE algorithm used on this page only gauges a buy or sell according to if the trade was above or below the mid point at the time it ran.
So here are some facts.
# The published trades here can be 15mins late!
# If the spread is wide, there is no way of knowing what side of the mid point the trade was.
# If a sp falls quickly, say bad RNS, sells will look like buys as by the time the algorithm runs it puts a sell above the mid point and shows it as a buy.
# If a sp rises quickly, say good RNS, a buy will look like a sell as by the time the algorithm runs it will be below the mid point so the buy looks like a sell.
# Furthermore it there is a wide spread you may find some MM’s are so far apart from the mid point so how do you know if it’s a buy or sell.?
# If you use interactive investor you may get a prompt, we have improved your order by £162 so your buy may look like a sell when published as there was one MM with a better book.
# or the stock may be illiquid and there is only 1 MM with the min so they push the spread out, I have seen 40% spreads on AIM, to deter trades. Volume and liquidity are key to gauging value.
#For every buy there is at ‘some point’ a sell, why do you think the London Stock Exchange don't say buy or sell. It’s just a trade to them. It’s the aggressors price that is published. I.e the trade instigator. The simplest way to gauge the buy/sell demand is the SP trajectory, the volume, and the chart candles. So if sp is going up then overall they are being bought. The shares are overall in demand.
The chart here with good volume and good liquidity indicates that the shares are at the moment in demand so the price is rising. That’s about as sure as you can be.
Trek
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