and the best way for doing this is opening positions where other (retail/uninformed) traders are (forced) to sell/buy (hint stop orders) and closing them on the opposite side (repeat step 1) It is rather ITs maneuvering their portfolio in that fashion so that cost of doing so is the lowest. In other words it's not just flag-being-engulfed-so-that-it-is-free-to-go-to-another one. There are times were ITs, even big ones, might be forced to adjust their positions either because of the some unexpected accident/news or just because fakeout is needed to confuse the biggest group of people. What I got from your message is that we should focus on (hidden) agenda behind the moves, not only PA itself. However as MTL Trader pointed out we might have reached the targer I must be honest though that the size and the vigor of the "retrace" surprised me (still nothing which wouldn't fit RTM framework - mentioned by me on the charts). In fact contrary to what you posted I was thinking about getting short and liquidating my position around mentioned level (be it origin of the up move and/or QM level below). and when the MM can change, why would a retailer believe in "there must be orders"? Remember, even the most powerful MM, it still has to change his phucking plan when earlier today's BREXIT news is not fitting its PO orders.
or understand MM's operation as possible as we can, and trade the guess
either we don't think abt MM's operation, but focus only on the price actionĢ. To trade effectively, we still have two options:ġ. It is time to get rid of some stupid sayings or belief that came from the very earlier origin of this whole methodology. So this (or these) MM is so freaking stupid, when SP500 rise almost 25%, and drop all the way back again, it still wish to buy? regardless of the drop is from where? regardless of how long/fast the drop is? Do you truly believe those MM, who employs smartest mind, and can see most of market depth, would just sit down there with their PO buys waiting for months or years? If yours, then when price drop back, are you gonna long from down there becoz of retailer buys pending are there wait for you?Įven if it is true, so you buy with the retailer's buy? we all know retailers are pigs in the market, and you are trading the same direction with retailers' rest of BUY?ĭon't we all know that MM are trading AGAINST retailers? Whose orders? you retailer or they market makers (MM)?
I mean your thought of "there were some orders left below" Better wake up, and the sooner, the better
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