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What is meant by "price goes Bid" or "price goes Ask" above/below respectfully, based on a level or zone? What does that look like on the screen? Please excuse my ignorance. I may be over complicating the issue.
Any and all explanations are welcome.
Thank you for your time and effort.
Affliction
Can you help answer these questions from other members on NexusFi?
I haven't heard of price going bid or ask based on a level/zone specifically, but terms such as "price goes bid" or "price goes ask" simply means that the best bid/ask spread has moved either up or down.
One person I heard using this terminology is John Grady, you can check out his videos on YouTube
As Xplorer says, John Grady has some good videos on DOM use.
"Price goes Bid"
Say you have a market with a one tick spread and the current inside prices are 22 Bid and 23 Offer with price trading at 23. Therefore buyers are hitting the offer price at 23. You have entered looking for price to tick up (say 24,25 is an area you want to break and you hope for a bit of a stop run above).
You are now long at 23. Price then ticks up because the Offer at 23 has all been bought or pulled. Price is now 23 Bid (and 24 Offer).
Ideal situation is that as soon as price has gone Bid you have a decent number of contracts that fill in at that new price straight away supporting the rise in price. If people are scared that price is going to break imminently they should be raising their bids hoping to get filled before price goes, as opposed to price ticking up but the Bids don't move up so a small seller can quickly knock price back down again, (suggesting others don't see a sense of urgency to raise their Bids and try to buy at that higher price).
You do not win as a trader, you just get to play again the next day. If that game doesn’t appeal to you then you should not trade. Gary Norden
it goes big or ask due to aggressive limits that mrkt participants have already executed. those limits may make it a penetrable...or in-penetrable zone
there are some really good threads on order flow on fio....u do need to check those out which may give clue. also ch jigsaw webinars on fio
