time&stamp

darvas_trader · Jul 1, 2010

I am trying to use T&S alongwith level 2. I use thinkorswim so other platforms may have different colors. I understand that the red and green numbers are to show whether the price went down or up from the previous tick. My question is can I interpret the green price to be one which was negotiated closer to the ask and thus interpret that volume to be the volume at ask? Stated differently, can this data be used to give two separate volume information-one at ask(green) and the other at bid (red)?

Mr. Charts · Jul 1, 2010

T&S means Time and Sales, not "stamp".
Remember every trade printing off was simultaneously a buy AND a sell, whether it's indicated green or red.
Richard

darvas_trader · Jul 1, 2010

Thanks, my bad. But although I do appreciate the fact that a buy and sell has to occur simultaneously, my point is whether there is any way to get a rough estimate of volume of shares transcated at the bid price and ask price. Although someone has to buy and someone has to sell but a transaction at the bid price would indicate that someone was eager to sell of at whatever the bid was and hence we can surmise that there is some selling pressure. The reverse would be true if the ask were hit more often.

Traderesq · Aug 19, 2010

darvas_trader said:
Thanks, my bad. But although I do appreciate the fact that a buy and sell has to occur simultaneously, my point is whether there is any way to get a rough estimate of volume of shares transcated at the bid price and ask price. Although someone has to buy and someone has to sell but a transaction at the bid price would indicate that someone was eager to sell of at whatever the bid was and hence we can surmise that there is some selling pressure. The reverse would be true if the ask were hit more often.

I think you can get a rough estimate simply by plotting volume bars on a chart with a very low frequency (maybe a 0.5-minute chart, a 0.25-minute chart, or Tick chart).

Also keep in mind that if a huge number of shares are traded on the bid price without the price moving down, it might instead be more evidence of an even larger buyer - not just an eager seller.

time&stamp

darvas_trader

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Mr. Charts

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Traderesq

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