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Originally posted by Teddyward
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Beware looking at depth as a tool as it is easily manipulated. For example A 1000 share trigger lot when executed can be set as a contingent order to immediately cancel or change price on another order pushing it further away from the bid and meaning it may never get filled. All sorts of games get played . Hidden orders in depth can also be contingent orders and are there specfically to suck punters in. Only real trades are ones executed and rest is noise. In the good old days before when the ASX removed broker numbers you used to put up a order with a specific number that would let the other insto buyers to know to give you a call as you were a volume buyer / seller but now that is all done via messaging. These days they still haveto walk the market up and down to execute orders that are away from the last price or to enable a cross but that is a different legitimate reason not market manipulation.
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Thanks for that Teddy. Yes its a hard environment to be in especially for a retail trader. Most have less tools than Instos. Even watching buy ups and sell downs through chix and asx 3 lines on IRESS makes you wonder if you are looking at a real algo direction or one to fool. I try to stick with stocks that have real value that can be measured but even then the movements are certainly not consistent. At least they usually don't stay down for long. I agree it is not as simple as it is often made out.
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