Trading behavior 101...
Section 16.2 - SHIFTING LARGE VOLUMES OF SHARES
16.2a - Selling
When large holders want to sell a significant line of stock...they do not load the next 10 levels of sell depth with only relatively small orders.
If they serioously want to sell, they actually load the buy side with dummy bids, buy a few "extra's" at-market, remove most of their sell orders from the screen and try to generate a rally, which they subsequently flood with high volume churn to help facilitate a "net exit" strategy!
16.2b - Buying
When large holders want to buy a significant line of stock...they do not load the next 10 levels of buy depth with only relatively small orders.
In the oposite approach to the previous lesson, buyers will actually load the SELL side with dummy sell orders, sell a few "sacrificials" at-market, remove most of their buy orders off the screen and try to generate a sell-off, which they subsequently flood with high volume churn to help facilitate a net buying strategy!
lol...not everything we see on screen is what we think!
The key to watch for a clue to a potential news leak are volumes...but even here we must be careful to read the underlying volume flows to determine whether we are actually seeing a "net-exit", or "net-entry" strategy employed.
A rising or falling price is not an indication of either!
End of lesson...lol
Cheers!
trading behavior 101...
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