This is my first post at futures.io (formerly BMT) and I wanted to say what an incredible resource/community this site has been for me during my short time as a member. I'm having trouble understanding a basic concept and was hoping someone could clear things up.
My question relates to the interpretation of high levels of activity at the bid or at the ask. I understand that the bid is where buyers are willing to step in and buy, and that this is the price set by buyers. Likewise with the ask for sellers. From posts and webinars that I've seen, it seems that a high level of activity at the bid is associated with a lot of activity by buyers and is hence viewed as bullish. On one hand, this makes sense because buyers "are" the bid.
On the other hand, a lot of activity at the bid means that sellers are willing to meet buyers at buyers' price. I thought that a lot of activity at the bid would be indicative of a large number of sell market orders. If this is the case, would this not show more eagerness on the part of the sellers vs. buyers and thus be a bearish sign?
How would you interpret high levels of activity at the bid or ask (bullish or bearish) and what is the reasoning behind this?