Get started

Marketmaker

📈📊 Detecting Liquidity: Pivot Points and Trading ReversalsGreetings, fellow traders! Today, let's delve into the fascinating world of liquidity, pivot points, and how they can be essential elements in your trading strategy. Understanding the relationship between these factors can provide you with valuable insights into potential price reversals and market sentiment. 💡📈 🤔 What is Liquidity? Liquidity refers to how easily and quickly an asset can be bought or sold without significantly affecting its price. In the context of trading, liquidity often clusters at specific price levels, creating zones where many orders are concentrated. These zones can act as critical points of interest for traders. 🔄 Pivot Points and Liquidity: Pivot points are technical indicators calculated from previous price data, typically using the high, low, and close prices. They provide potential support and resistance levels, but they also reveal where liquidity might accumulate. 🔍 Liquidity Pools: Liquidity often pools around pivot points, creating liquidity pools. These pools represent price levels where a large number of buy and sell orders are clustered. Traders pay close attention to these levels as they can signal significant price reactions. 🚀 Trading Liquidity and Reversals: Here's how you can leverage liquidity and pivot points in your trading strategy: Identify Pivot Points: Use technical analysis tools to identify pivot points on your chart. There are various pivot point calculation methods, such as Standard, Fibonacci, or Camarilla. Choose the one that aligns with your trading style. Focus on Confluence: Look for confluence between pivot points and other technical indicators, such as trendlines, moving averages, or RSI. When multiple factors align at a specific price level, it strengthens the significance of that level. Observe Liquidity Zones: Pay attention to areas where liquidity is concentrated. These zones can act as magnets for price action. When price approaches a liquidity pool, it's more likely to experience significant movement. Spotting Reversal Signals: Reversals often occur near pivot points, especially if there's a confluence of factors. Look for candlestick patterns, divergence in oscillators, or other reversal signals to confirm a potential change in trend direction. Risk Management: Always implement proper risk management strategies. Set stop-loss orders to limit potential losses if the market moves against your position. 🌐 Conclusion: Understanding liquidity and pivot points can provide you with a unique perspective on market dynamics. By identifying liquidity pools and watching for reversal signals around pivot points, you can make more informed trading decisions. However, remember that no strategy is foolproof, and risk management is paramount. Keep refining your skills and adapt to ever-changing market conditions. 🔄📈
Education
by AlexWhale
1
Advanced Analysic for GBPAUD! BUY HERE!My analysis of the GBPAUD forex pair is as follows: Market Structure: I have identified the MINOR wave structure, marked in BLUE on the chart. The corrective wave structure, labeled 0A-BC and marked in RED, is also evident. By employing additional techniques, I anticipate that the correction will conclude at the designated point C. Price Action Momentum Channel: On the chart, I've identified a bearish momentum channel. I anticipate that the price will reach the lower boundary of this channel, and this could present an opportunity for buyers to enter the market. Fibonacci Analysis: I've identified significant price reaction zones using Fibonacci analysis. In conjunction with other analytical methods, I predict that the price will react notably at two critical levels, particularly in the presence of substantial economic news. SUPPLY & DEMAND BLUE MINOR STRUCTURE: ~ Fibonacci 0.618 reversal. Other Secrect analysic. Thank you for considering this analysis.
Long
by KC_Trader77
Understanding How Forced Liquidations / Stop Hunts are DesignedIn this write up I will explain how we can extrapolate our knowledge of stop loss orders to understand the automatic execution of what are known as forced liquidations or stop hunts. We will understand the mechanics of how Bitcoin can achieve such speed of movement and how to predict these events by reading the charts with a unique perspective of pre-design of these events. Our first goal with viewing the Bitcoin chart is to remain objective and without personal bias. We should have no emotional attachment or opinion when it comes to trading and asset effectively. Due to the lack of regulations in the crypto market and our knowledge of for-profit ventures benefiting off the liquidations of traders positions, we can strive to align ourselves with these forces so long as we decide to actively trade this market. We can begin by understanding what drives Bitcoins price up and down. Unlike equities that have relational value to real world output via job creation, product sales, infrastructure, P&L reports, etc - Bitcoin is in a different class of assets lacking intrinsic value and belong to what I like to call “perceived value assets”. This means the evaluation of price is based on an agreed upon value, defined only by liquidity flowing into and out of the asset. This creates the “volatile” nature you hear about in crypto assets. Prices are very fluid and move up and down extraordinarily fast at specific times that may seem random. The executable actions that impact the price is the fulfillment of orders; buys and sells. Where things get interesting is in understanding stop loss orders and their accumulation. Stop losses are effectively limit orders that reverse the position of traders by returning liquidity into the Bitcoin market cap or by pulling it out of the market cap; depending if the stop loss is for a LONG or SHORT. While it may be hard to grasp how the futures market has a direct effect on Bitcoins price, we must understand that in futures we are simply instructing Market Makers what to do with their assets by borrowing the leverage to our margin and in effect they will sell or buy Bitcoin. The stop losses of these trades are the direct opposition and not only is it in the Market Makers interest to ensure you aren’t taking money from them, attacking the stop losses and liquidations of your trades has a factual benefit to both the exchanges and market makers who collect your position margin once liquidation level is hit. Understanding this we can look at the bitcoin chart and make sense of accumulation of stop loss orders; shown here in my boxes (green are buy orders / short stops, red are sell orders / long stops). We can gauge for ourselves the amount of stop losses accumulated and predict the speed of bitcoins movement and clear interest in setting up a two way liquidation. Now why would a two way liquidation of such magnitude occur? The answer is to do with the US Dollar just underneath a major bearish retest on the 3 month chart. An entry into a bull market is would be a key time to execute a dramatic liquidation on Bitcoins chart, as we see here there is a chain reaction ready to hit both the top and bottom level I have marked. As the stop loss orders are hit, there is accumulating power sent into the next level, which creates exponential speed of movement and this is what we like to call “stop hunts”. Hopefully this article is helpful and allows you to understand how we can decipher the chart in a way that allows us to forecast out these movements and ideally prove that these “unpredictable” movements are in fact quite predictable after all. - Dick Dandy
by DickDandy
50DMA and TBILLS indicating when bear market hitsHere's a closer look at a highly reliable cyclical bear market indicator. Over the past two decades, it has consistently proven itself as a trusted signal, often aligning with yield curve inversions. In contrast to employing trendlines and breakouts for precision, this chart relies on moving averages. These moving averages function in a similar manner to channels, as they calculate the mean, much like a channel does in various aspects. When there's a breakdown from this mean, it typically signifies a significant loss of support. From a fundamental perspective, this shift suggests that the market is heading towards a risk-off sentiment, leading investors towards products such as TLT due to their appealing pricing in comparison to stock valuations. The divergence we're witnessing appears unlike any we've encountered before. To return to the mean, it would require either a prolonged consolidation at higher levels for many months or a sudden and sharp downturn. I have my own theories on how such a downturn might occur, possibly triggered by an event akin to a cyber attack on financial systems, similar to the disruption caused by the COVID pandemic. However, that's a discussion for another day. In this scenario, our focus should be on reacting to developments rather than attempting to predict them. Currently, the most crucial level to monitor is a potential retest of the 4100 range on the SPX, coupled with how the yield curve reacts when it approaches its initial resistance. If a breakout occurs in these areas, it could signify an increasingly uncertain market environment. For a more detailed analysis, please refer to the chart below, which provides insights into the points I've discussed.
TVC:US03MY
by EdwinPus
Exploring the S&P500: Decoding the Market Maker-Here's my quad chart analysis of ES1!, the S&P500 futures index, displaying striking accuracy with Fibonacci retracements. -The top two boxes present micro charts on daily tf's, showing recent Fibonacci-based peaks and troughs. The bottom two are weekly schematics on 3 Day tf's, revealing longer-term trends obediently following Fib levels. -KEEP IN MIND THE BOTTOM TWO "WEEKLY" ARE ACTUALLY 3 DAY CHARTS MAPPING A WEEKLY SCHEMATIC -This alignment suggests the Market Maker's playful maneuvers before an anticipated significant move. Based on the patterns, I hypothesize a considerable downtrend on the horizon for the S&P Futures Index (ES1!). -Remember, market predictions aren't set in stone and require vigilance. However... dump city here we come.
CME_MINI:ES1!Short
by MichaelBsul
UUUU entry - sub $6Energy Fuels (UUUU) is a Uranium and Vanadium mining company that is domestically sourced low carbon renewable energy fuel (U( and steel strengthener (V2O5). * Improving earnings - nearing profitability * Domestic contract growth * By-product Vanadium is also in demand - steel recycling * Energy market can not rely on oil and LNG alone * MFI crossing 50% and consolidation and buying will increase scarcity * CCI momentum hitting bottom Entry this week after dropping below $6 with limit buys and retracing back to 238 fib level. Will watch for drop to full retrace to $4.90 (exit before) or a more likely climb to 500 retracement at $8 and watch for break through or more consolidation. Own opinions of energy market - come to own conclusions, or comments here welcomed. Like to hear what others in energy market have to say. Warm winter LNG will get us through, what stocks are you loving for 2023? @Pokethebear @rudcharts
AMEX:UUUU
by Pokethebear
2
Market Makers Buy And Sell ModelThe market Makers' Buy and Sell Model is a strategy that reveals the market maker algorithm model for price delivery. Basically, there are 3 things market makers' algorithms do with price in every trading session, day, week, and month Those 3 things are; Accumulation, Manipulation, and Distribution. AMD: A: Accumulation M: Manipulation D: Distribution 1. Accumulation: They accumulate liquidity through the delivery of a ranging market. The purpose of delivering a ranging market is to induce both buyers and sellers to enter the market thinking that price will go in their direction. How to Identify a Ranging Market: You know price is in a ranging market when you see obvious relative equal highs and lows price range. In a ranging market, price swing points have relatively equal highs and lows, that is, the price is neither delivering a higher high nor a higher low. 2. Manipulation: After accumulating both buy and sell orders, they then manipulate the market to further induce another set of traders which are breakout traders. But, that particular manipulation move is not their intended direction for the day. They only use it to gather liquidity, Which will then lead them to the next action which is to move and distribute prices in their real direction for the day. Usually, when price breaks out of a ranging market, the break-out is a manipulation to further induce a new set of traders to enter the market, further proving liquidity for market makers' real intended direction. 3. Distribution: After manipulating the price to a particular direction different from their plan, they then distribute the price to their original intended direction. e.g to buy, they will first sell the market and then buy at the discount price level. You know a price distribution through clean candles that left imbalances behind and then break market structure away from the previous manipulation move structure high or low to form a new structure. Example of Market Makers Buy and Sell Model as described on the chart. AMD: A: Accumulation M: Manipulation D: Distribution Accumulation: Price range for some time, accumulating liquidity on both sides of long and shorts. Manipulation: Price broke the high of the accumulation to take out Buyside liquidity and then create a new higher high and higher low. But it's a manipulation move. Distribution: Price moves away from the FVG leading to a shift in market structure, plus a short pullback, follow by a massive move to the downside to take out sell-side liquidity below. Entry: Your entry should be inside the FVG created by price before the shift in market structure, you can set a limit order inside the fvg and place your stop loss at the high of the swing high created prior to the fvg and shift in market structure. The same thing applies to a bullish market. Basically, Marker makers push prices higher so they can sell the market at a premium, while they sell the market to lower prices so they can buy that market at very discount prices This strategy can be used in any time frame and all markets including forex, crypto, stocks, future etc. Follow me for more updates. Feel free to ask me any questions in the comment.
Education
by Elijahenoch7
LTCUSD | Will halving get us through the resistance?Good morning, One month to go until Litecoin Halving. Since the beginning of the year, we have been constantly moving between the daily EMA 200 (white) and the EMA 800 (purple). At the time of this idea, we are back below the EMA 200 and all of our EMAs have flattened out. With such news events, existing resistances and old liquidity zones can usually be worked off well. I am therefore preparing for two scenarios. Scenario 1 (blue) We come in July again significantly above the EMA200 and our short EMAS, 5+13 pull along. In this I would use 50% of the capital that I want to use for this idea. The other 50% when breaking above the EMA800. Scenario 2 (orange) We get a stop hunt of our range. Everything from $71.60 would be a top price and would lead to 50% accumulation. The other 50% would come into play should we get back into the range after such a stop hunt. Price Targets : Around $110 and between $140 and $150.
COINBASE:LTCUSDLong
by Hawkeye-Charting
3
EURUSD | PingPong of EMAs It's been a long time since I took a look at the Forex market, so I'll start with our Euro against the USD. If truth be told, I haven't missed much since 3 months ago. As the title says, as see a PingPong game of the EMA 200 and 800 or in other words: It is nothing more than a range. This leads to the simple idea to trade the Reaction. In fact, currently we are back at the daily EMA800, with a good chance that we get a divergence in the TDI. I would leave some space for the SL, since, as seen in May we could well play a little above the EMA. As a target for the time being the EMA200 should be targeted, if this is reached, one can ride the remaining position.
Short
by Hawkeye-Charting
How Market Makers Manipulate Retail TradersMarket makers require a substantial amount of funds to facilitate the trading activities of retail traders by placing buy and sell orders, thereby ensuring liquidity. However, there are instances when market makers themselves need liquidity to execute their own orders for profitable trading. To acquire the necessary funds, they may have to halt or liquidate a significant number of retail traders by temporarily reversing the market direction below the previous consolidation level, but rarely past the secondary major support zone. This manipulation occurs as market makers exploit the increased liquidity that arises from stopping or liquidating these retail traders in order to secure cash for their own trades.
by EsotericTrading
Spy500: Elliot wave. Zoom out. Bigger correction incoming Studied Elliot wave theory only for about 2 years. Any input appreciated. Is anyone seeing this? IMO, I believe we could hit wave 5 of 3 hit the 4.236 fib and then big correction incoming. If fed continues to raise hike, war escalates, hyperinflation, etc - I believe we may have already complete this wave and we could be just on the BRINK of a much bigger bear market. In which case, further pain must happen and spy could go as low as 215.
AMEX:SPY
by knee000
My ES1! with the levels I am watching.I am still waiting for the wave Elliot. But despite this unfortunate delay, here is my HTF chart as of today Saturday 29th 2023. A quick run down on what the general idea for what I think will happen: Price will stay under 4500 topping out. Buyside will be taken and we will start another bear run to Sellside. Anything after that is beyond me as of now but I have a couple levels noted below as where we can bottom out or start a retracement. It's possible anytime soon the price gets repriced to a specific level 100 handles lower as an example in the birth of a geo political issue or financial crisis as we are in that season right now. The Black Swan Season. Be careful. Safe trading. Here is a brief description of my levels and why: It's magic and a magician never reveals his tricks. These levels can of course never even be traded to and if that is the case I will make a new post with the new levels I'm watching. I will repost as price trades to the levels getting more in depth about what my thought process was and why :). For now just be a witness. And a reminder to do your own research. I am not a financial advisor, I am a magician.
CME_MINI:ES1!
by I_AM_LPTrades
Algorithm vs Liquidity In Determining PriceBased on my research into IPDA and algorithms, central banks, trading firms/hedge funds, and smaller banks use execution algos (EAs) for trading with different objectives. Small banks use EAs to split large parent orders into smaller child orders generally in one direction, buy or sell. These orders are executed separately over a period of time to either open or close positions. Trading firms and hedge funds use opportunistic EAs to buy and sell to turn a profit. Central banks use market making EAs to buy and sell in order to bring liquidity providers net positions back to or close as possible to neutral. (This sounds like equilibrium). Central banks use EAs cautiously and only during their main trading hours and always under the supervision of people. A key reason for using EAs is to access multiple liquidity pools in order to reduce market impact or footprint. This is similar to a parent child relationship between Central Bank algos and other smart money players, where smart money (including central banks) accumulate orders in consolidation before expanding price, then the central bank algo pulls them back to equilibrium like a parent calling their child that has strayed too far away. Then they rinse and repeat. I am of the opinion that with the function of central bank algos to facilitate the provision of liquidity with minimal market impact, that liquidity itself is the determining factor in price delivery. Algos used by smart money break up large orders in to smaller chunks and funnel them to multiple liquidity providers (market makers) for fulfillment since forex is decentralized. If there is enough liquidity (buyers and sellers) to open/close positions at a certain price then it is done at that price. When liquidity is low or there aren't enough buyers and sellers at the current price, the market maker's algo has to fill these received orders where there is enough liquidity based on available buyers and sellers. The algos move very quickly which can deplete available buy or sell orders rapidly leaving unfilled counter party orders in its wake which defines liquidity voids (imbalance). Algo adjustments to meet buyers and sellers at their price is perceived as a stop hunt but it's just economics. Example: If I must sell something and I want to sell it for $100 but no one is willing to pay $100, I would have to look for buyers willing to pay $95. If I must buy something and I only want to pay $100 but the seller is charging HKEX:105 , then I have to pay $105. Either the buyer crosses the spread to meet the seller or the seller crosses the spread to meet the buyer. When there are limit and stop orders the buyer or seller isn't moving so the liquidity provider has to move to meet these buyers/sellers at their limit or stop order prices (including orders left behind in liquidity voids). When the orders trigger and price reverses it takes out both buyers and sellers so people call it a hunt, but I'm sure it is intended for actual institutional trading entities because retail traders such as ourselves can not provide the liquidity to be on the other side of every order placed by institutions. We are simply collateral damage in the battle between financial titans seeking to provide and tap into liquidity.
Education
by MartialChartsFX