the good news is ..., page-11

Shepson,

This is the contrary theory. It is such a common belief now that players fill the sell side with orders to induce more sellers and instead buy stock. How about the theory that stacking the sell side actually induces buyers with false confidence who believe that theory is true and therefore they are able to sell more stock to these unsuspecting buyers?

I don't place alot of credence on these theories. I have found it much more reliable to watch closely intraday changes in market depth. When the sell side stacks it is much more likely that the shareprice will drop. When trading I usually sell on this change and buy back cheaper later. Works only for stocks that I know intricately very well and have followed for a while.

There are many reasons why people place buy and sell orders well above or below current value.