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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
📊Liquidity GrabSmall and big players tend to acquire larger positions in the market than they can afford, in an attempt to benefit from the leverage. This is where the concept of liquidity grab comes into play. Large trades and institutional investors need to locate liquidity areas in the market to complete their trades. Stops and stop-loss orders are critical for survival in a leveraged market. Stop hunting is a common practice in Forex trading, where traders are forced to leave their positions by triggering their stop-loss orders. This can create unique opportunities for some investors, which is called a liquidity grab. Stop hunting is a trading action where the price and volume action threatens to trigger stops on either side of support and resistance. When a large number of stops are triggered, the price experiences higher volatility on more orders hitting the market. Such volatility in price generates opportunities for participants to enter a trade in a favourable environment or protect their position. The fact that too many stop losses triggered at once result in sharp moves in the price action is the reason behind the practice of liquidity grab. 📍 What is liquidity sweep? In trading, a liquidity sweep is the process of filling an order by taking advantage of all available liquidity at multiple price levels. Traders use this method to ensure their orders are filled at the best possible price by breaking up their order into smaller sub-orders and spreading them across multiple price levels. Institutional traders and high-frequency trading firms commonly use liquidity sweeps for efficient and quick execution of large trade volumes. 📍 Liquidity Zones Big players in trading aim for the best prices but face challenges finding sufficient counter-forces to fill their large orders. Entering the market at low liquidity areas creates more volatile markets, negatively impacting the average price. Conversely, entering at high liquidity areas results in less volatile markets, ensuring a better average price for the position. These liquidity zones are where stop-loss orders are placed, and the concept of "liquidity grab" comes from the need for big players to enter the market in these zones to take large positions. Traders use swing lows and swing highs to create these liquidity zones and place stops as reference points, resulting in either a reversal to the mean or a breakout of the level. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
21
This Is How GBPUSD Will Likely Move In Coming Months | Be Ready!I have published this idea to give you a general view of how to look at GBPUSD in the meantime .. Please do consider that this is an estimation of how price might move, given the current conditions and market outlook and that may change and it's not stable.. A confirmation must occur before determining every leg of the moves shown on chart, and confirmations of lower timeframes is obligatory.. This is the general view of what we might expect price to do.. make sure to hit a FOLLOW to get updates and confirmations right away💥 What's your view on this pair and DXY in general?
Long
by MST_Trader
WAVES/USD Main trend. Accumulation and distribution zones. Logarithm. Main trend. Time frame 1 month. Are you scared in the market right now? If yes, then rejoice and change your fear into a positive. After all, if you're scared, then other market participants are similarly scared, and this is an understanding of the surrender zone. Linear schedule . 1 month. Accumulation and distribution. The average price of recruitment and resetting. In this trading idea, I will describe how a big player works and manipulates the price of an asset. You need to understand the mechanism of market play according to cycles and the psychology of people's behavior in the market in different phases of the cycle. The big player in the asset accumulation zone "makes volatility," allowing you to earn locally (he buys into you). On pamp, you sell coins with a profit of +50%, +100% +200% is not particularly important. After all, the point is for you to sell coins at a profit or a loss. The less liquid the instrument, the wider the range, and vice versa. Then the same coin is sold to you or others like you in the next cycle, but at a profit of +10,000% or more. For a major player, the % monopoly on coins of the total market turnover is important. A large percentage of the total turnover gives an opportunity to influence the price in its favor, in other words, to control the price of the cryptocurrency. As a rule, most do not buy in accumulation, they are afraid. They wait for those who are supposed to sell to them to say, "Fools, it's time to buy in triple-dollars." Accumulation. You make a lot of money not on the pump but in the growth of the price in a strong trend. It takes time, sometimes a very long time, to accumulate a position in a certain range. On some liquid U.S. stocks, it takes a year or more to gain a position. On cryptocurrencies, this process is much faster, but sometimes this stage of the process is time-consuming. Most market participants, who are doomed to lose all the time, do the opposite. Projecting into trading what they are in real life. Anything that has to do with money reinforces this effect. Buy expensive (aimed at buying), sell cheap (aimed at selling). Do not inherit this tendency. Distribution of coins (sale of coins). Similarly, it takes a long time to reset a large position in an acceptable price range as well. This example of working on this cryptocurrency illustrates this creative process well. It is a creative process because it is work according to the plan, but from the situation that develops, you need to inspire the mice to willingly crawl into the mousetrap with a smile on their face. We need to keep the price (price level range) and let them earn +30%, +100% +200% is necessary to get everyone used to super-highs. Make a substitution in the concept of “super highs” and “bottom”. And simultaneously, you gradually unloaded your position. Believing hamsters will willingly buy "from the bottom" thereby you will not burn a lot of money to keep the “faith level”. You have to understand the mindset of the majority and their desires. Most people can't think for themselves, they pass off other people's insinuating thoughts as their own. Such is the psychology of the lower classes. Destructive desires, low intelligence and ideological significance. They do their thing. Intelligence in the crowd evaporates, herd cloning thinking is turned on. It's contagious... After about 60-70% of the position is sold out in an acceptable range, the dumping of the rest of the asset begins. By moving the price down to the desired new set of positions, you gradually "kill the faith" of the lazy hamster in a bright future. As a rule, the crowd is drained at the very bottom, when it was told to sell, or correctly said, instilled with the idea to get rid of the “unpromising”. You must know in advance where and at what % of the allocated sum you will fill the position and under what conditions. There should be discipline in everything, and you should determine in advance your future actions according to your trading algorithm, rather than an emotional component. Closer to the main position set zone-another price increase (optional) to unload another 10-20% of the position. In this coin this was done in the last cycle. Often you can see that this is done differently. Imitation of the accumulation channel, when the remaining extra part of the position is unloaded (not all of it). This method allows deceiving not completely stupid people, namely traders who analyze only price charts and understand the internal processes. People see an imitation of accumulation. This, by the way, is difficult to understand. After all, skillful work always hides "traces of the crime" in the buying/selling lane. And only experience allows you to determine that. For example, I once got into such a situation due to my inattention, but a timely exit upon confirmation of a breakdown of channel support partially leveled the situation. Unsuccessful experience is also extremely important, you need to make the right conclusions and continue to develop in this area as a player or even as an operator. In the next cycle of accumulation-pumping-dumping-accumulation, the process naturally repeats itself, if the organizers have enough rationality to support the project. A fool is not a mammoth, he will not go extinct. That's why this market makes super profits. It's very simple. I copied the entire text from my educational article 2020 , on the same coin. Profit over +500% since publication. Maximums as shown +12,300% or $60.66 WAVES/USD Main Trend. What "fuel" doesn't see. Process . Now there are problems with the USDN Stablecoin near the surrender zone Importantly, you have to understand that this is DEX WAVES Stablecoin, which is the point of "untethering." Amazingly, I haven't come across anywhere in the comments disgruntled and understanding why this is being done. Is the market to blame, as in LUNA-UST? All accidents of this magnitude are not. On the Internet, in the comments of victims encountered only negative (gave up, anger at losing money, “killed faith”) or conversely positive (the desire to save your money). Any trader understands the essence of cheating. Any stabelcoin is an altcoin whose stability depends on people's belief in its stability, and the willingness of its creators to maintain that belief in stability. WAVES/USD Secondary trend. Wedge. Capitulation. Locally. Time frame 1 day. Locally. Time frame 1 day.
W
by SpartaBTC
28
Aspects to Market Maker Modeling from a Retail Perspective 3Market makers' provision of liquidity is a complex system that involves managing an aggregate of securities and derivatives that are readily available to be cashed on spot. Market makers use different market approaches to manage their inventory, such as bid-ask spread, order flow, and algorithmic trading strategies. These approaches allow market makers to make a profit by providing liquidity to the market, while also mitigating risk and ensuring that they have enough inventory to meet the demand of market participants. Market making is a highly competitive business, market makers need to be able to generate a profit in order to remain in the market. They also need to be able to anticipate and respond to changes in market conditions, economic conditions, and regulations in order to remain profitable in the long term. Market makers can create inventory artificially by using a variety of strategies. One common strategy is to use algorithmic trading systems to generate large numbers of buy and sell orders in the market. These orders can create the appearance of increased demand for a particular security, which can push prices higher. Another strategy is to use derivatives such as options or futures contracts to create synthetic positions in a security. This allows market makers to take a position in a security without actually owning the underlying asset, creating the appearance of increased demand and driving prices higher. It's worth noting that creating inventory artificially is not illegal, but it is heavily regulated by the financial authorities, and market makers are subject to strict rules and regulations to ensure that these practices do not harm the market or its participants. In summary, market makers can create inventory artificially by using algorithmic trading systems to generate large numbers of buy and sell orders in the market, or by using derivatives such as options or futures contracts to create synthetic positions in a security, this allows market makers to take a position in a security without actually owning the underlying asset, creating the appearance of increased demand and driving prices higher, but it is heavily regulated by the financial authorities, and market makers are subject to strict rules and regulations to ensure that these practices do not harm the market or its participants.
Short
by NQQuan
1
USDCAD appears bullishThe USDCAD market has exhibited bullish order flow starting from January 30th at a price level of 1.32998, reaching a peak of 1.34709 on January 31st. However, a pullback was observed subsequent to the upward move, as price retraced to the H4 and M15 demand zones. The potential for a rally to the upside exists if these double demand zones hold. It should be noted that as the end of January approaches, there is also a possibility of price moving away from these zones in pursuit of raiding liquidity below in the form of an irregular W pattern. From a market maker perspective, the 13EMA has demonstrated a clear divergence from both the 50EMA and the 200EMA, suggesting the potential for the recent pullback to reach a point of exhaustion. To mitigate risk and maximize potential returns, it is recommended to carefully observe the market for indications of price rejection of these demand zones, or for market makers to "crab" liquidity below these levels, prior to entering a long position. Considering the present wide spread during this trading session, it may be prudent to wait for further price consolidation until the London session open before making a decision. In this scenario, a short-term target of 1.3350 (with 200EMA acting as possible resistance), and a medium-term target of 1.34000 have been identified as potential long trade targets.
Long
by Samuel124
2
GOLD: Bullish outlookThe XAUUSD currency pair, representing the exchange rate between gold and the US dollar, is currently facing rejection at the 1900 and 1896 support zone. This follows a significant drop of over 200 pips attributed to robust selling activity from the 200EMA, which is functioning as dynamic resistance. The current scenario suggests an oversold condition of the pair. My analysis predicts that the pair will reach the levels of 1908 and 1913 in the near term, with 1908 serving as the short-term target and 1913 as the medium-term target. In the event of a deeper correction, I have set 1918 as the extended medium-term target.
FOREXCOM:XAUUSDLong
by Samuel124
6
GBPUSD: BEARISH OUTLOOKThe psychological support and resistance levels for GBPUSD for the current week have been established at 1.24044 - 1.23774. The technical analysis of the 4-hour and daily time frames indicate a bearish trend, with the daily time frame currently situated within a contraction zone. Based on the 4-hour trend and weekly PSR, it is expected that the bearish sentiment for GBPUSD will persist. This bearish trend may be further strengthened if the daily time frame exits the contraction zone with bearish momentum. From a market maker's perspective, two key scenarios to monitor are: 1) price rejection at the 50 exponential moving average (EMA) with TDI divergence and 2) price rejection at the 200 exponential moving average (EMA) with a shark fin pattern on TDI. My short-term target for this market scenario is 1.23130, while the medium-term target is 1.2285.
Short
by Samuel124
3