Hi, not sure if anyone is interested in knowing the demand supply amounts recently and the differences in numbers for the smart money, but thought to share it anyway. This isn’t an up ramp either just what I have seen on the charts recently.
If you want to understand about this supply demand indicators ive been mentioning you can get the 2 ebooks off the inside trader website under resources you don’t have to be a member since im not but just explains how it is meant to work. There are 2 pdf files which might be of interest to some people.
Today I was looking at the demand line for the top 5 prices, this goes up and down all during the day and the final number at end of each day is what is used on the daily chart except during the day as the number changes it will still appear on the daily chart too. I also watched the top 8 and the full market depth lines but for short term price direction the top 5 and top 8 prices are the ones to likely be most accurate.
Today on the chart for the first 5 prices, around 10 55am there was an increase from 0.7567 to 2.1748 which is an increase of 2.8740 times or about 290% increase in demand in the top 5 on the buyers side compared to the sell side. At around 12 43am there was an increase from 2.1595 to 4.2565 which is almost another 100% on top or a 560% increase in demand from the opening this morning. At close it finished at 1.9171 more than the sell side but big buyers wont buy up all day which can be noticed when the demand increased at 4 separate times in large amounts today, but that also means demand dropped during the day as well. The demand increased from 1.1104 at 3.51pm to its 1.9171 at close.
The top 8 levels increased to a high of 2.2437 this morning from opening at around 0.9218, its closed at 1.4982.
The full market depth isn’t really used for short term price movements but for just an idea of the direction the price should be moving towards. At close the full market depth demand is 0.745 and number of buyers is 0.4869. The higher the demand is the blue line on the chart and the lower the red line is shows there are smaller number of buyers but they want to buy bigger amounts of shares.
On the charts the blue line is above the red line on the top 5, top 8 and full market depth at close.
The idea of these indicators is just when you see the blue line increasing it means there are more buyers then sellers, so when on the chart it said the demand was 4.25 it meant there was 4.25 times more number of shares wanting to be bought then there was to be sold. Its only to give an indication of what direction the price might start moving towards like the macd and other indicators but the demand shows an increase in buyers and number of shares wanting to be bought so may provide some people a chance to buy in earlier then those that wait till indicators have crossed to suggest a new direction in trend, but is best used wth other indicators to get a better idea.
This isn’t always going to work since market depth can be manipulated and that’s why there are 3 different price intervals to use, but looking at all 3 you can get a better idea of what might happen in the near future.
The smart money indicator, many may not call it smart but just going by its name just lets people know if the buy side is buying more shares than previously then people would be expecting a price increase. So using the example where the top 5 price levels reached 4.2565 and the number of buyers/sellers ratio was 1.8888 this gives a smart money ratio of 2.2535 times bigger parcels of shares per buyer being bought then sellers are selling. The smart money numbers are only to give people an idea and doesn’t mean will work every time but it does at least suggest there is confidence in either short or longer term for the share price from current prices.
If you look over the last 5-6 days of trading before the price moved up to 40+ cents there were some big buy orders going through. Also some might say smart people don’t sit in the market depth for their trades since they don’t want to show what size parcels they are purchasing, but can look at the trades that go through during the time of increased demand and can see if anyone is buying large amounts of shares which can help show that when the demand has increased that its not just people manipulating the market depth and placing orders and taking them away at the last minute.
Also a brokerage site called trader dealer is one that is set up designed to suit traders where they can make several trades over a day so if they want to buy a very large amount of shares they can break the amount of shares into several portions to be purchased over the day for the one brokerage cost, this can be used to make people looking at the market depth think that there isn’t anyone buying large amounts of shares when some individuals could be buying large amounts of shares. Same goes for selling.
The 2 charts I have posted if look at the daily chart just before march the demand went up to 10 and a month later the price increased from 60 cents to over 1.20. Also looking at the last few days on the qu chart the demand has increased over the last week but with very little price movement, the idea of this indicator is to show when demand has increased before a price move to help with picking stocks before any movement happens. Doesn’t always work but thought this may be of interest to someone.
This isn’t an up ramp this is what has happened following the charts over the last week and just thought to share.
The charts below might not mean anything but thought to show them anyway, if you look at the the daily chart just before march on the q5 line there was a large demand for the stock, but on the qu one the demand increased through march which gave a later indication of demand increasing when share price was going up but the q5 line where the buying was strong before march got in at 60 cents and made about a 100% profit over 2 months.
GDN Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
