I'm trying to learn tape reading......so here's a question from a novice: I read somwehere that if you see another trader that sells the bid, and as a result the bid price does not become the ask price, this signals increased demand. I thought the bid becoming the ask would signal demand because it would increase price? I hope someone can please straighten me out.
i think what you are referring to is when the bid is getting hammered and and shares that arent there are getting eaten, I am not an expert but its been told to me that could be the specialist getting long. or short if its on the offer check this thread out tons of insight into tape reading http://www.elitetrader.com/vb/showthread.php?s=&threadid=56373&highlight=tape+reading