Registered User
Joined: 12/28/2011
Posts: 120
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Hi,
Please take a look at this chart, it's the overnight session of AAPL and it shows something I do not understand. I can't think where else to ask to get a knowledgable response.
https://imgur.com/oM7lyJN
If you look on the right of the image you see where I have annotated the current BID and ASK prices. As you can see the trades appear to be occurring near the BID price and nothing is showing at the ask price level. The spread is consistently very wide at around 30c at the moment. The price level shown suggests the few trades that are happening are occurring at the BID price, so I would expect that these are people selling at the bid and not buying at the ASK. There appear to be no trades occurring at the ASK.
If that is the case then why is price going up? Is there another exchange with a narrower BID/ASK spread? Are these annotations correct?
Any insight is appreciated. It seems I have a fundamental misunderstanding of how the markets function. If so, then could you recommend a book or webpage that would help me understand the mechanics of this behaviour?
Many thanks for your help
Kind Regards,
-Jason
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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Trading patterns like that really aren't the kind of things on which we are allowed to comment or speculate or provide advice.
-Bruce
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Registered User
Joined: 7/29/2010
Posts: 417
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"it's the overnight session of AAPL ''
Please consider that pre-market and especially after hours trading is typically low volume and therefore much higher risk because it is so prone to manipulation.
You may want to study this during regular market hours.
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