Stay on Top of Market Prices with this Tool
Every day in the financial market brings many fluctuations and surprises, like the recent buzz around Meme Stocks. For a closer look at this scenario, you can check my previous post.
To identify potential market opportunities faster, real-time and in-depth trading data could be the key! That's why moomoo is teaming up with Nasdaq to offer complimentary access to Nasdaq TotalView Level 2 quotes until July 31st.
I. First, let's get a grasp of what is NOII?
You can find the NOII data (Net Order Imbalance Indicator) under the stock quote page, featuring the opening bid reference price, paired shares, and unpaired shares.
Keep in mind that this feature is exclusively for mooers who claim the Nasdaq TotalView Quote card. Haven't jumped on board? Claim Now
II. So, how to use NOII?
Put it simply, NOII helps you gauge supply and demand gaps before the market opens (or closes), estimate opening (or closing) prices, and plan your trading tactics accordingly.
Say, an investor eyes a stock buy at the opening bell. He checks NOII and notices a high positive unpaired share count, indicating way more buy orders than sell orders.
This might lead him to believe there is strong market demand for the stock, expecting an upward opening price. Consequently, he might place a buy order slightly above the reference price to increase the chance of getting in at open. However, if he anticipates a significant gap up, he might also reconsider the timing to avoid buying at peak prices.
Conversely, if NOII data displays a notably large negative unpaired share count during the opening cross, indicating many more sell orders than buys, this might suggest a drop in price after the opening bell. In such a scenario, investors might consider waiting for a better entry point.
III. Under the scenario of IPO, NOII helps you stay ahead in the game.
With NOII, you can receive IPO opening price notice and market demand-supply dynamics on an IPO's debut day even before official trading begins, guiding your next moves.
To further explain, In the IPO scenario, the timing for the opening auction is different. Since IPO stocks lack prior trading history and investor familiarity, more time is often needed to gather order information to get a more precise opening price, with no set standard can apply.
Let's take the example of Arm Holdings, a UK-based semiconductor and software design company, which listed on NASDAQ on September 14, 2023. As one of the largest IPOs last year, it garnered significant market attention. Here's how NOII could have been instrumental in navigating this event.
After 10 AM ET, the NOII info kicked in. At first, the data suggests the open price might be at 65, but then it dropped to 60. There was a seesaw battle between buyers and sellers. First, buyers were eager (positive unpaired), then sellers took over (negative unpaired), but quickly, buyers regained the upper hand.
This info indicated that when trading opened, it looked like buyers would keep being very active, suggesting a possible opening price around $60, influenced by the buyers' dominant stance.
This forecast was on point. Arm ultimately opened at $56.10, very close to the NOII suggested levels. And indeed, Arm saw an upward climb that day, peaking with a gain of 28.43%, closing the day up 24.69%.
Are you feeling more in tune with how NOII works now? Would you use NOII to try to gain an edge in your analysis? Drop us a line in the comments!
*Level 2 data is free for Moomoo Financial Inc. accounts with a minimum 30-day average account value of $100+. Other conditions apply, to learn more, visit https://j.us.moomoo.com/00AEDX
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Tosiek : yes. I would
White_Shadow : that's great information, some excellent features explained...Thanks MooMoo
70495499 : Yes this is helpful information, thanks.
iSpyderTrader : Very helpful information. This could be very useful for hedging.
71481702 : info helpful, keep adding features to make it easy to pick winners! am adding to my account. way better than rhood, webull !
Oneironaut88 : This is a game changer. Thank you Moomoo. I'm sure we would all appreciate more posts that are as informative, to the point, and easily understood as this one is.
John Perry6 Tosiek: Chh
Michael tedeski : love it more
Darth Magnavox : Do it.