To add on what I discussed previously.

 

Put aside the real queue. We shall discussed the fake queue. Basically BBs place the big sell queue volume there for a few reasons. But before that, you must understand that BBs works in a group of a few peoples. They buy and sell their own lots.

 

1)          When retailers see big sell queue, buyers? natural reaction is scared to buy and sellers? reaction is ?Queue behind hard to get it? so sell straight at buy price. So sellers throw at buy price and BBs collect.

 

2)          Before a counter chiong, BBs usually have already accumulate enough lots. So when they pushed up the price, they cannot keep buying from retailers from each pip as they push up. So the only way is to place big queue there so less retailers will queue behind. As they push up each pip, they buy minimum lots from retailers.

 

3)          BBs buy their own lots to create volume. Counters with big volume tends to attract retailers.

 

4)          To create a chiong scenario. E.g. sell queue have 3000 lots. Then BBs eat up 2000 lots at one go. When retailers see that, they will rush in to buy.

 

5)          To distribute their holdings. How?. E.g. They put 5000 lots at sell queue. Eat up 1000 lots and then continue to eat smaller lots in a fast speed. Retailers see that will chiong in to buy. Once sell queue nearly finish, they top up some more lots at sell queue. Sometimes BBs will put super big sell queue. Let?s say the usual trading volume is 1000 lots. Big sell queue is 4000 lots. Super big sell queue may be 10000 lots. By placing super big sell queue, they can clear more lots. Recently we saw WE with super big sell queue of more than 50000 lots. Pls note that the chance to clear super big sell queue is very low.

 

Pls note that if there is big sell queue up many pips at MD, it doesn?t necessary mean it will run. Everyday you will see big sell queue at quite a number of pips at many counters but it don?t run. It just shows some signal that BBs still inside and there is a possibility of a run. No big sell queue usually means no run. Some times you see big sell queue of e.g. about 2000 lots at many pips up. Everyday you see the same thing but no run. Then you must take note whether the big sell queue have increase to maybe 4000 lots boh. If have increase, this is good. If decrease, then no good. Also have to take note whether the big sell queue have move down or move further up. Move down is good. Move up is no good. E.g. Today the price is 180-181 and the big sell queue at MD starts at 182, 183, 184 and so on. Then tomorrow the big sell queue starts at 181, 182, 183. This is good. If tomorrow the big sell queue starts from 184, 185, 186, then this is no good. It is important to take note that if a counter runs up and then comes down again, you will see big sell queue all the way up at MD. These big queue cannot be taken into account after the price drop down.

 

So now you know why I?m happy to see big sell queue. I will be worried if I continue to see big buy queue because BBs likely will withdraw their buy queue and the price will drop. But is will come to a point where the big buy queue is real.

 

Some peoples asked why BBs buy high sell low?. The reason they said that because big volume were traded at higher price where big lots were done. BBs won?t buy high sell low eh. They pushed up many pips up in a faster pace. Then they start to distribute their holding by buying and selling their own lots at the higher price. Of course the volume is high at higher price lah. That?s why you see when a counter moves up, it moves up fast and then come to a point where it ding dong there for a longer time.

 

There is one type of big sell queue trading which you all have to avoid. That is BBs place big sell queue. Then they start to eat up the sell queue lots without the buy queue building up. E.g. Buy queue 500 lots and Sell queue 3000 lots. Then BBs start to eat 1000 lots at sell queue, then eat another 1000 lots at sell queue. Sometimes BBs will eat up their own 3000 lots. Then on th next higher price, they do the same until retailers comes in. This happen recently to PS Group if anyone saw the trading that day. It happened on Matex, Sunlight and St James previously. Jiutian C BBs also like to play this pattern. When BBs trade this way, they usually will only push up a few pips(maybe 1-3 pips I didn?t really count). Then it will start to drop and can drop a lot at times. If you see this, you can take this opportunity to short it. High chance make very good money.

 

In trading, it is important to know how to see whether a counter have buying power. Let?s say you see peoples continue to throw at buy price. When it is nearly finish or finish, the buyers will comes in again and this continue. Most important is that you see that the sell queue is big. This is accumulation. Remember that day I said accumulation is taking place at Mirach at the price of 465?.   It ran up to 50 the next day. For this case, BBs is more pro. They put big queue at 47 and a few hundreds lots at 465. Then they keep throwing at 465. 465 finish put some more and they continue to throw. This continue for quite a while. When retailers see this, they also follow to throw because they think so many sellers ah. BBs collect.

 

Not only that you need to know power buying, you will also need to know how to see whether BBs buying or retailers buying. I mean real buying and not buying own lots. This one is hard to explain and also not easy to see especially if the buy/sell queue volume is always big. I can only use CCM as an example. E.g. Now the sell queue is   50 lots at 195. then someone queue sell 100 lots at 195 so total 150 lots. Then another one queue 100 lots at 195 which make it 250 lots. After a while, someone bought 300 lots at 195. High chance this is BBs   buying because when the buy/sell queue is so low about 100 lots each queue, not many retailers will buy 300 lots at one go.

 

Anyway, you will have to know the characteristic of a counter and its daily normal traded volume. Once you know this, you will see the abnormality in the volume which mean there may be some action soon.

 

I think I have write enough. Tired liao. Need to go home now. Hope you all understand what I say.

 

Big huat to all of you on Monday. Have a nice weekend.

 

Huat ah!