General discussion thread, page-2717

The one fourth action I think is based on algorithmic trading. When computers are trading, the amount does not matter. Objective is on volume and try to win every trade. Most people who trade this way, don't pay for each trade, so it does not matter what is the value of trade. Every cent or dollar counts..

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We had a lot of them today. The moment quarter happened, it was put for sell. Eg if you put an order for say 32k at 13.5 and if the buy happens in quarter, like 18k and 14k at 13.26 there is at least a 50% chance you will suddenly see the sell order at 13. 5 has increased with two new orders of 18k and 14k. The computer expects to sell and make profit on that quarter. This happened today multiple times. One of the reasons we were not able to get past 13.5. Someone bought at 13.5 thinking it will reduce the sell side. It has an opposite effect, now in fact the sell side instead of decreasing by x buy amount, increases by x amount. This makes it more difficult to wipe the sell.

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But in this there is only one positive. When computer does this, it's bullish. The algorithm tells that price action is good and so more likely a sell will happen at 13.5. Otherwise computer will not buy, if it has to buy at 13.25 and sell at 13. So today's trading by computer was bullish and indicating price may go higher. Of course, all this is probability and not every time it will work, but you just need to win more than lose to be in front. So at this algos are indicating we may go higher.

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So hopefully it gives some insight. I have written everything from reasoning and logical point rather than claiming to know the inside, so I could be wrong though I have a gut feel I am right.

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Watch it tomorrow and see how it plays out. I watched it today and earlier for a long time. All the best.