Suppose in a stock market we can access the information of buying/selling density per trader/account. For example during a trading session, V number of shares (i.e. volume) is traded by B number of accounts/traders are at the buyer side and S number of accounts/traders are at the seller side. Now if we define the densities as follow:
- buying density = V / B
- selling density = V / S
and then Buyer Seller Ratio (BSR) as "buying density" / "selling density", What relation could be between BSR and price? (if any).
If BSR < 1 (which means B > S) then the existing shares are held by more shareholders and vice versa for BSR > 1. Regarding this fact, my question is: when is the price likely to move higher? when number of shareholders is increasing (BSR > 1) or when number of shareholders is decreasing (BSR < 1).