Comment on Commonly Used Jargons

Prakash Babu commented on 30 Jul 2016, 06:25 PM

my question i just simple, as i am just a beginner in intraday trading. the difference between a bid price and an offer price is , in a bid price a potential buyer intends to buy a stock at that price and the ask price is a potential seller wants to sell a stock at minimum price. so, if i want to buy in open market. i have to buy from ask price or offer price and similarly if am selling i have to sell to best bid price. it is right if come to a conclusion that more volume in offerprice where potential seller intends to sell indicates a bearish trend, as more amount are waiting to sell. and high bid volume suggeting more people are inclined to buy a stock. so can i come to a conclusion that when there are more bid volume ( more shares waiting to buy) indicate a bullish trend and more offer price volume ( where more people intends to sell at a said price) indicates bearish trend. kindly enlighten me.

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