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at: http://www.avafin.com/articles/1018128.html

I see:

"Today, a total of 141 block trades were recorded, typically at least 10,000 shares of stock or more represent a single block unit. Further examination shows that the bought value of the shares was $54,964,331 versus the sold value of $52,488,308. The positive cash flow of $2,476,023 into the stock shows that investors have bullish sentiment."

I asked a similar question here and didn't get a suitable answer:

What does "more buyers than sellers" in technical analysis of stocks actually mean?

The situation described at avafin.com is certainly not one of differing numbers of orders (since this is a look at trades not orders), nor is it a difference between the bid and ask (since again this is trades not orders).

These are actual executed trades between a buyer and a seller. How can the price or "value" of these shares differ when bought or sold? What does the above sentence actually mean?

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1 Answer 1

Please refer to this question to understand the basics of how an order is matched. How do exchanges match limit orders?

Now most of the times even Block orders follow the same matching criteria. I think you are assuming that for every large buy order there is a matching large sell order. This is not true.

So on the Buy side at various point in times there were Buy Orders, with Single order more than 10,000 shares. On the sell side to fulfil these orders there may or may not be a single order of 10,000. More often there will be quite a few smaller orders or 500, 1000 or whatever amount that are present in the queue based on the amount & time sort order or even partially matching out of a sell order of 10,000 ...

Similarly when there is a large sell order of more than 10,000 , these may not have got filled in by a large buy order but by smaller buy orders etc ...

So if you average out the amounts on the buy side and the sell side there would definately be a difference.

The analysis of this difference is as indicated in your question, buy price is more than sell price and hence people are bullish ...

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