|
PureBytes Links
Trading Reference Links
|
But would it be valid or correct to say that to get rid of 300K with a 100
bid it would have to be a certain MMID (I know it depends on the stock). For
example on DBCC I hate to play against Nite because I have seen that very
thing happen. I should also say I only use this with other indicators. For
example a oscillator pull back to zero. Will it cross zero and continue to
fall out of bed or will it reverse after that profit taking phase. I only
want to look at the data at " Key points" in the market and the MMid's
should in theory respond in a specify way. After all they build the bar on
the time frame you are looking at.
I have found a interesting side note. By plotting several MMid's on a 5 min
chart. (they are plotted by closed tick lines meaning they are dots on the
chart) If I over lay a FIBO retracment at .38 or .5 or .68 they all line up
their or by moving through several indicators I have found some MMid's are
trading off moving averages most of the time. and some trade off of
oscillators most of the time. They way I can tell is a theory. My assumption
is based on the fact that the majority of their movement hit the indicator
line.
I also have been told that specify MMid's can be expected to trade certain
ways. A BIG generalization would be some firm represent Mutual Funds and
some represent day traders and some buy order flow but they all trade a
certain way depending on their overall goals. Another side note is that I
only trade stocks below 50 bucks. One because of my portfolio size two
because they attract less skilled traders; in the public and at the firms.
Plus the "Axe" or Lead MMid is easily discerned
My main Premises is that these are the people that make the Bars and turning
points, What I need help with is how should a MM act in certain market. A
flat market would mean he is playing the spread. In a trending market would
mean that he is sell his own positions or buying. Watching one guy work the
market is very interesting to me.
Lets take DBCC it is over sold on every indicator. (three weeks ago) When it
bottomed out. Nite would "bang" the bid let it down tick and jump up and
Buy. Let it down tick and bang the bid for more stock. Much the same way you
would unload a stock. Slowly with a exit strategy. It was kind of sexy much
like the Tango (LOL :) These movements should tip an investor off if they
are used with Volume and other charting formations.
I know the complexity of what I am working with but really this is how a
market is formed. I know a floor trader that would watch the cargill Grain
traders work a order into the market and this would help him with this
trading. His chart would say over sold but he would sit their waiting for
the institutions to confirm the bottom.
Thanks Jeff Crystal
> -----Original Message-----
> From: Ron Dawes [SMTP:ron@xxxxxxxxx]
> Sent: Tuesday, September 14, 1999 3:15 PM
> To: Crystal, Jeff; realtraders@xxxxxxxxxxxx
> Subject: RE: Positional Trading with Level Two
>
> Jeff,
>
> I understand your desires but after spending about a year as a LII based
> stock-daytrader, I'd say that what you want to do would stand a very small
> chance of working the the real market. Market Makers have SO MANY GAMES
> that they play with INCA and ISLD and their buddies that it's really hard
> to
> judge market direction from spreads or their actions. Depth of bid or ask
> usually mean very little with the current rules. I've seen a MM sit on
> ask
> showing 100 shares for 300K worth of selling. No way to tell when he's
> finally ready to move. Not saying it's impossible just that you will
> certainly have your work cut out for you. Good luck.
>
> -----Original Message-----
> From: owner-realtraders@xxxxxxxxxxxx
> [mailto:owner-realtraders@xxxxxxxxxxxx]On Behalf Of Crystal, Jeff
> Sent: Tuesday, September 14, 1999 11:14 AM
> To: realtraders@xxxxxxxxxxxx; omega-digest@xxxxxxxxxx;
> EnsignList@xxxxxxxxxxx
> Subject: Positional Trading with Level Two
>
>
> ?? As some of you know I have been "back testing with Level two data". I
> am
> trying to picture in my mind what a Level two screen would look like when
> a
> Turning point starts to come into the market. Here is what I have noticed
> the Spread between MMId's narrows as a stock run one way or another, The
> Spread widens out as the move up or down stops.If a turn is going to take
> place again the spread will narrow a again. (By spread I mean the over all
> spread of all active MMid's).
>
> Anyone have any comments of the Logic of this statement.
>
> I am also looking at the depth of the bid at a turning point.
>
> Any thoughts
|