My observations on price action (SG's type-pure tape no charts) is this.I think the narrowing of the ask -bid spread depends on the speed of the price action. When the price movement slows typically there is a reversal.This is typically accompanied by a wide spread but not always. Just experienced this in Vijaya bank dec Fut now at 106.45. Spread narrowed,speed slowed down and bang kinda reversed saved by the skin.
If the speed is fast and in an uptrend and the spread narrows then time to buy at market for the expected up move.
If the speed is fast and in an uptrend and the spread narrows then time to buy at market for the expected up move.
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