Dr.Andrews Pitch Fork's
Median Lines > Prices will reach the latest Median Line the Prices will either reverse on meeting the Median Line or gap through it. When prices pass through the Median Line,they will pull back to it. Prices reverse at any Median Line or extension of a prior Median Line This action happens roughly 80% of the time, the other 20% of these moves are due to market action and sometimes out of our scope of knowledge this may be due to.....The Daily Market Moves, or Price moves other than just the Retail Traders ebb and flow the (WHEN) the markets move,the (Who), the (What) and the (Why) behind these moves ?
Aside from intervention by the Central Banks on a daily basis, Who else is behind these market moves? Of the two groups that influence prices are:
The Market Makers, Whom are a broker-dealer firm that accepts the risk of holding a certain number of shares of a particular security in order to facilitate trading in that security. Each market maker competes for customer order flow by displaying buy and sell quotations for a guaranteed number of shares. Once an order is received, the market maker immediately sells from its own inventory or seeks an offsetting order. This process takes place in mere seconds.
The group referred to as (Smart Money) Because insiders and better-informed speculators typically invest more,the Smart Money can sometimes be spotted by greater than usual volume, especially when little or no public data exists to justify it.
Knowing who the smart money is, when and where they're investing can be of a great benefit to retail investors who want to ride the smart money's coattails of whom involves Bank Trading Desks, Hedge Funds, large corporations, that anyone big enough and with enough money at their disposal and willing to use it to influence prices. Now wrap your heads around this .
The Market Makers tend to be neither Bulls nor Bears. They are just putting on their own trades in advance of manipulating prices from one area of orders, they just filled for commissions, to another area of orders waiting to be filled for commissions.
In busy hours they will more likely "enhance" the move in the direction they see that Smart Money wants the prices moved, thereby encountering least resistance to the move to get price where more Smart Money orders stand, and more commissions are waiting to be had.
In "off hours" of the market, there will be lower resistance to moves either way, which explains the sometimes sudden and contrary moves as market makers take price to some level to fill orders so they can make commissions.
The main thing to understand here is that moves put on by Market Makers frequently tell you if Smart Money is a bull or a bear because the move is to enable Smart Money to get orders filled at more ideal prices. If the moves are up, Smart Money is a bear and is selling at highs. If the moves are down, Smart Money is a bull and is buying at lows.
It really doesn't matter who is in the Slot of Smart Money. What is important is these are the big money players that market makers cater to. For example, if Smart Money is a Bear and has just engaged in heavy shorting which has driven the price down, but now the price is too low for them to desire to continue to short at current prices, then price action stops.
Sometimes there follows a quick "Knee Jerk" of the price on much less volume, which would be the market makers taking the price back higher because that is where Smart Money has located their next batch of sell orders. When such upwards price action is viewed, it is often misinterpreted as bullish. It isn't!.
It is just market makers hiking the price to get it higher so they can resume collecting commission on Smart Money's short orders that have been placed higher.
The market makers and Smart Money work in conjunction . Smart Money sets the tone of the market, being either bulls or bears and switching from time to time.
The Market Makers slave themselves to Smart Money, having a voracious appetite and out for commissions and with some insider trading of their own, based on where they see there are orders to be filled and commissions waiting to be made, and the opportunity to put on their own trade to profit by the price move they are about to undertake.
Once you understand all of this,and you start beginning to understand why price & volume analysis at important Support & Resistances are so effective. You begin to understand the truth in not where price is going, but Who ? Bulls or Bears are moving it !" Who is behind the daily market moves? Find out and Forkin Trade accordingly.
A Forkin ForexMospherian:
Splithand
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