Bluffers/flippers/flashers...
What are they?
They are an above average number of orders placed at the
bid/ask price in order to influence the market in a certain
direction without the intention of being hit/filled. These orders
are often refreshed in order to keep them at the back of the queue
so that the person asking/bidding the large size isn't hit.
The following is a Time and Sales printout from
26 August 2004 at 10:07 EST. I'll tell you what was
happening below.
The prices and quotes are scrolling from the top down so read
from the bottom up. At 10:07:11 there are 4676 contracts bid at
1104.75 and 2870 offered at 1105.00 (4 lines from the bottom). We
then see the offer side drop in the following form in less that a
second:
| Bid |
Change |
| 4675 |
|
| 4600 |
-75
|
| 4300 |
-300
|
| 3825 |
-475
|
| 2625 |
-1200
|
| 1350 |
-1275
|
This is what the 1 minute chart looked like at that
time:
Page
1 2 3