Because there are lots of traders who constantly look at the DOM. If they see this huge limit order, there is a strong possibility that many of them will sell, because this large offer makes them think that some of the big boys are selling at that limit.
While small traders sell, the pros buy them.
So this is a trick used by the biggies to buy.
Don't know any more
The following user says Thank You to rocky9281 for this post:
I don't know any platform that allows you to customise the Time&Sales or DOM.
Tradestation has a trade feed you can access from a chart but does give you anyway to see if a trade is at bid or at ask.
Ninja has a trade feed you can access from a chart and does allow you to see if a trade is at bid or ask BUT - that's not really customising Time & Sales.
I didn't look at eSignal API (don't like it) nor the TT API - but I will be looking at TT API shortly. My guess is it will be the same story.
This is based on research about October time last year. It is of course, possible to write your own Time & Sales - but you'd need a good reason to go through that pain & cost. That's why I was asking about this 'Dual' Time & Sales with sells on one, Buys on the other. I can't imagine what use it would be.
It is indeed odd that the leading retail 'strategy development' platforms don't allow you to include condition of a trade (at bid/ask) or depth info in a strategy.
The following user says Thank You to DionysusToast for this post:
You have see in this situation a reaction to the big limit order. It was a big seller and he was filled, but market react and go down. At this point tape probably were slooooooow))))
if you want careful and detailed answers, please ask detailed questions)))
this is will help
you need to describe:
1) price level (support or resistance)and type of price(previous low or high,or braken low or high)
2) is there was large prints or not and what prints are were there (BID block ASK block)
3) speed of the tape and how it moved. is it push or is it run
4) of what size was limit ordes at bid and at the ask
And YES guys. You can trade using only tape)))
Is my english clear for you )))
Happy holidays to all of you i know you are loving you country very much )))
The following 2 users say Thank You to bloom for this post:
Thanks for all the input. My reason for 2 time and sales windows or having 1 be the buy side and the other the sell side is just watching the size of the orders comming through at critical levels in the market like support resistence or off MP area's for confirmation. Or if your a trend trader watching it on a pullback to see when to enter in the direction of the trend.
The following user says Thank You to hoseman for this post: