EDITED.......GOT THE SOURCE
re:i just posted this on other thread,
I HAD this on my laptop from somewhere i cant remember and am sharing it ,may be it will be useful for those that want to analyse transient zones with volume. I wont say more than that.
Pulse and think mostly on eurusdd way of thinking on price behavior.
How the price makes and how the price up and down? I’ll give you example on “How the price make?” at a simplified simulation.
Simulation of: “HOW PRICE CHANGE?” in simplified.
Name of multi-Currency: GBPJPY Present price: 172.354 bid, 172.379 ask (example only)
Name of Institution that look into this price: MM1, MM2, MM3.
MM1 already hold their position open in market as long. They have 20 open long already. Here is the list of their offer (bid) price:
172.600 (2 Position)
172.750 (3 Position)
173.100 (4 position)
173.300 (11 position)
MM2 and the other looking for Short position, so, they look to Short at highest price as possible.
What happened next when some of the MM fill or do a deal in market?
MM2 Open short by fill order MM1 at 172.600. The price jump up from 172.354 bid into 172.600 bid
and 172.620 ask. This order makes the new price now updated into 172.600 (bid) and 172.620 (ask).
This is the new price.
Then MM3 Open short by fill order MM1 at 172.750. The price jump up from 172.600 bid into
172.750 bid and 172.780 ask. This order makes the new price now updated into 172.750 (bid) and
172.780 (ask). This is the new price.
The prices itself already SHOW the position that MM look for in the future. As you see from example above, price jump up when the MM opening short. Jump up again, when another MM opening short again. I ask you to keep this as a secret (Ha ha ha ha….). So, no wonder if retail trader 90% suffered loss. The trend that many retail trader follow, actually is the result of the opposite position from MM. They know the future, but retail trader not. Then, if we are in the same page here, we can
conclude with: “price trend up, we looking for short; price trend down, we looking for long.”
By understand “price up, we looking for short; price down, we looking for long.”, doesn’t mean that
we should blindly jump in, and open position.
re:i just posted this on other thread,
I HAD this on my laptop from somewhere i cant remember and am sharing it ,may be it will be useful for those that want to analyse transient zones with volume. I wont say more than that.
Pulse and think mostly on eurusdd way of thinking on price behavior.
How the price makes and how the price up and down? I’ll give you example on “How the price make?” at a simplified simulation.
Simulation of: “HOW PRICE CHANGE?” in simplified.
Name of multi-Currency: GBPJPY Present price: 172.354 bid, 172.379 ask (example only)
Name of Institution that look into this price: MM1, MM2, MM3.
MM1 already hold their position open in market as long. They have 20 open long already. Here is the list of their offer (bid) price:
172.600 (2 Position)
172.750 (3 Position)
173.100 (4 position)
173.300 (11 position)
MM2 and the other looking for Short position, so, they look to Short at highest price as possible.
What happened next when some of the MM fill or do a deal in market?
MM2 Open short by fill order MM1 at 172.600. The price jump up from 172.354 bid into 172.600 bid
and 172.620 ask. This order makes the new price now updated into 172.600 (bid) and 172.620 (ask).
This is the new price.
Then MM3 Open short by fill order MM1 at 172.750. The price jump up from 172.600 bid into
172.750 bid and 172.780 ask. This order makes the new price now updated into 172.750 (bid) and
172.780 (ask). This is the new price.
The prices itself already SHOW the position that MM look for in the future. As you see from example above, price jump up when the MM opening short. Jump up again, when another MM opening short again. I ask you to keep this as a secret (Ha ha ha ha….). So, no wonder if retail trader 90% suffered loss. The trend that many retail trader follow, actually is the result of the opposite position from MM. They know the future, but retail trader not. Then, if we are in the same page here, we can
conclude with: “price trend up, we looking for short; price trend down, we looking for long.”
By understand “price up, we looking for short; price down, we looking for long.”, doesn’t mean that
we should blindly jump in, and open position.
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