The figures at the bottom of my broker’s Market Depth list reads
44 buyers for 17,846,338 units 49 sellers for 8,975,212 units
Of course it’s common for buyers and sellers to stack the figures well out of the money to create artificial pressures, so I just concentrate on the first 3 rows nearest to the action.
2,226,056 0.35 ......... 0.37 262,000
1,510,000 0.34 ......... 0.38 550,000
1,600,000 0.32 ......... 0.39 910,000
I grab the first 3 rows and put them into Excel. With the help of a macro I can quickly calculate the value of the first 3 buying rows i.e. 2,226,056 * .35 = $779,119 plus the next 2 rows similarly, and do the same on the selling side.
I reach the conclusion that
At an average bid of 0.3382
Sellers are offering:
Worth $ 660,840
At an average offer price of 0.3837
Where do I go from here? I can’t just say 5.3m shares versus 1.7m shares because there is 4.5 cent difference between the bid and offer.
Mathematically, in some sort of ratio perhaps how can I measure true buying and selling pressure in those top 3 rows?
Thank you for your help.