First off, I apologise if this has been covered elsewhere; I had a brief look but couldn't see this specific question answered.
How much emphasis do you/should you be placing on the market depth of a stock when buying and selling? For example, is it usually best practice to buy a stock when it has more buyers & volume (i.e. more buyers price is likely to rise), and sell a stock when it has more sellers & volume? Basically, is the market depth an accurate representation of the supply and demand for any given stock? Keeping in mind I trade on Comsec so can only see the top 10 for each side.
I am aware that you should be buying stock when it is cheap, and sell when it is expensive. If you are placing too much emphasis on market depth, would this classify you as a "follower"?
Maybe if you wait until "the tide turns" after a downward/upward trend for example, would this be a valid strategy? e.g. At the moment Telstra has about 3x the amount of buyers than sellers (volume) and has been in a strong upward trend. If this shifts to even buyers/sellers, would that be a good time to sell?
Of course this should only be one of many factors considered. To refine my original question, how much weight should be placed on market depth as one of the factors considered when buying or selling a stock?