How to interpret internal and external orders: Decoding short-term buying and selling strength from order book data

As a stock investor, when you open your trading software, you will definitely see the numbers “內盤” (internal volume) and “外盤” (external volume). But many people don’t really understand what they represent, let alone how to interpret 內外盤怎麼看 to judge market trends. In fact, these two data points can help you quickly capture capital flow, identify the intentions of major players, and even detect “false breakout” traps. Today, we’ll start from zero and teach you how to truly read the buying and selling strength on the order book.

Why should you look at 內外盤? First, understand “主动买” (active buying) and “主动卖” (active selling)

Before diving into 內外盤怎麼看, you need to understand a core logic: stock transactions are not passive; they are determined by “who actively initiates.”

There are two types of order placers in the market:

• Sellers: hope to raise the price, placing “ask” orders to buy
• Buyers: hope to lower the price, placing “bid” orders to sell

When the stock price “trades at the bid price,” it means sellers are impatient and actively meet buyers’ low-price demands. This transaction is recorded as 內盤. The sellers’ eagerness to sell indicates a stronger bearish sentiment in the market.

Conversely, when the stock price “trades at the ask price,” buyers are more impatient and willing to accept higher prices for immediate execution. This is recorded as 外盤. This usually reflects stronger buying momentum.

Example: Suppose TSMC shows “Bid @1160 yuan / 1415 lots” and “Ask @1165 yuan / 281 lots.” If an investor immediately sells 50 lots at 1160, it belongs to 內盤; if someone immediately buys 30 lots at 1165, it belongs to 外盤.

Level 5 quotes: the first step to understanding the order book

Most investors open their app and see the five-level quotes first, but few truly understand them.

The five-level quote displays the top five bid and ask prices in real-time. On the left are 五檔買盤 (five bid levels, usually green), representing the highest five bid prices; on the right are 五檔賣盤 (five ask levels, usually red), representing the lowest five ask prices.

For example, if the top bid shows “203.5 yuan / 971 lots,” it means the highest price at which the market is willing to buy is 203.5 yuan with 971 lots; if the top ask shows “204.0 yuan / 350 lots,” it indicates the lowest price at which the market is willing to sell is 204.0 yuan with 350 lots.

Note: The five-level quotes only show pending orders; they do not guarantee execution and can be withdrawn at any time. This is a common tactic used by major players to create false signals.

Calculation and application of 內外盤比 (internal/external volume ratio)

If you want to quantify buying and selling strength numerically, you need to look at the 內外盤比. The formula is simple:

內外盤比 = 內盤成交量 ÷ 外盤成交量

• Ratio > 1: internal volume exceeds external volume, indicating stronger selling pressure, market is bearish
• Ratio < 1: external volume exceeds internal volume, indicating stronger buying pressure, market is bullish
• Ratio = 1: buying and selling forces are balanced, market is stagnant, lacking clear signals

But this is just a basic judgment. The real trick of 內外盤怎麼看 is to combine price movement, volume, and order book structure for analysis:

Healthy signals:

• 外盤 > 內盤 and price rising, volume increasing → buyers actively pushing up, strong bullish trend
• 內盤 > 外盤 and price falling, volume increasing → sellers actively unloading, strong bearish trend

Danger signals:

• 外盤 > 內盤 but price sideways or falling, volume fluctuates wildly → beware of “trap to buy,” where major players place high bids to lure retail investors in, while secretly selling
• 內盤 > 外盤 but price rising with unstable volume → beware of “trap to sell,” where major players place buy orders to tempt retail investors to sell, while quietly accumulating

Support and resistance zones: advanced application of 內外盤

Once you’ve analyzed 內外盤, you should also incorporate support zones and resistance zones to truly grasp entry and exit points.

When the price drops to a certain level and “won’t go down,” it indicates a large number of buyers lining up at that price—this is a support zone. These buyers believe the price is low enough and expect a rebound, creating a potential long opportunity.

Conversely, when the price rises to a certain level and “won’t go higher,” it suggests previous high-position buyers are eager to exit, piling up sell pressure—this is a resistance zone.

Practical tips:

• When the price hits a support zone, consider going long
• When the price hits a resistance zone, consider taking profits or shorting
• If the price breaks below support, it often signals accelerated decline; if it breaks above resistance, it may trigger a new upward trend

Advantages and limitations of 內外盤

Advantages:

• Reacts quickly, updates simultaneously with transactions
• Simple concept, easy to understand
• When combined with bid/ask orders and volume, can improve short-term prediction accuracy

Limitations:

• Easily manipulated; major players can create false signals through “placing orders → executing → canceling”
• Only reflects current transaction behavior; cannot predict long-term trends
• Using it alone can lead to distortions; must be combined with technical and fundamental analysis

Conclusion

The core of 內外盤怎麼看 is to judge “who is more eager.” A larger 內盤 indicates sellers eager to exit; a larger 外盤 indicates buyers eager to enter. But the market is more complex than just data; it also involves market sentiment, news, and fundamentals.

Finally, remember: in technical analysis, the most important thing is to observe the price and volume in conjunction. 內外盤 is just an auxiliary tool, not a magic bullet. Proper preparation before investing is essential for steady progress in the stock market.