Please understand I am new to all this. Have trades currencies in past but now with options and market depth/volumes I have started to notice a pattern.

In my world I have always believed the more bid(buyers) the market is bullish and if more ask than bid then market is bearish.
But after having looked at data most often when ASK is higher than BID in volumes - the price goes up and if BID is higher than ASK the price goes down.

Well this could also be to the case that if a price moves down, bids(buyers) are adding positions and therefor usually in a drop there are more buyers since they have added positions.

In a large uptrend usually ASK is greater than bid - why?

Have I understood things correct or is my settings in chart software wrong?

And how on earth can this be?

fxSOL 

Please understand I am new to all this. Have trades currencies in past but now with options and market depth/volumes I have started to notice a pattern. In my world I have always believed the more bid(buyers) the market is bullish and if more ask than bid then market is bearish. But after having looked at data most often when ASK is higher than BID in volumes - the price goes up and if BID is higher than ASK the price goes down. Well this could also be to the case that if a price moves down, bids(buyers) are adding positions and therefor usually in a drop there are more buyers since they have added positions. In a large uptrend usually ASK is greater than bid - why? Have I understood things correct or is my settings in chart software wrong? And how on earth can this be?

If 1000 contracts (offered) at the (inside) ask and 500 at the (inside) bid and I buy 2000 contracts at the market the price will go up. In other words you only see the order book (DOM) with resting LMT orders which is changing every tenth of a second. You don't see the orders placed at the market. Therefore the assumption that price must go up when more bids or must go down when more offers is wrong. I wish it was that easy.

p.s. for what it is worth, with a footprint chart you can see the actual traded volume at bid and ask. Good luck.

-Mich

Why does the market move towards the heavier side of the order book? Someone said to me recently: I have observed that this tends to be the case as well, though I don't pretend to know how to use the DOM effectively to trade. Do you agree? And if so, why is it the case the the side with more orders tends to …

Mich62 

If 1000 contracts (offered) at the (inside) ask and 500 at the (inside) bid and I buy 2000 contracts at the market the price will go up. In other words you only see the order book (DOM) with resting LMT orders which is changing every tenth of a second. You don't see the orders placed at the market. Therefore the assumption that price must go up when more bids or must go down when more offers is wrong. I wish it was that easy. p.s. for what it is worth, with a footprint chart you can see the actual traded volume at bid and ask. Good luck. -Mich

Thank you for taking time to respond - appreciate it! Actually footprint chart is the reason why I have begun this new journey and with Sierra. Its a steep climb and it will take time to learn and a lot of new ground to cover.
Thank you!