What are your thoughts about off-screen buyers and sellers? On some of the speccy stocks, it can be frustrating to see a very strong buy depth, a very weak sell depth and yet the share price declines over the day. Usually because the bid keeps getting hit with sells which do not originate from the sell stack. Easy to see if you have Etrade Pro or other live depth platform (HTX is one example, PIE is another).
My thoughts about this are that sellers sit off-screen waiting for the buy depth to fatten up before chucking sells. Why? Because putting in large sell parcels in the sell stack scares buyers to move further down the bid. Again another element of psychology. Same with buyers I guess.
In this case is it best to ignore depth altogether? Or do you look at depth with the knowledge that only an undeterminable portion of buyers and sellers are represented.
