Market Maker Tricksters
When you see a tall bar on the 1 minute chart, with super high relative volume, how do you know at what price that volume was mostly at?
Take a look at this 1 minute chart at two different brokers. One shows continuity of price move over the minute. The other shows an extreme gap at the minute, with all the volume for that minute at high prices. One chart might be misleading. The chart with the gap means that the MMs used their price queue to start off the minute by pegging the price much higher, which they could do if the intervening price levels were void of pending orders. But, it is possible that there were two different market making banks, each facing a different situation here, one capable of gaping the price and the other not due to having to execute intervening pending orders.
And what does it mean? Gap or not gap, it most likely means the MMs rushed price to highs to close longs.
When you see a tall bar on the 1 minute chart, with super high relative volume, how do you know at what price that volume was mostly at?
Take a look at this 1 minute chart at two different brokers. One shows continuity of price move over the minute. The other shows an extreme gap at the minute, with all the volume for that minute at high prices. One chart might be misleading. The chart with the gap means that the MMs used their price queue to start off the minute by pegging the price much higher, which they could do if the intervening price levels were void of pending orders. But, it is possible that there were two different market making banks, each facing a different situation here, one capable of gaping the price and the other not due to having to execute intervening pending orders.
And what does it mean? Gap or not gap, it most likely means the MMs rushed price to highs to close longs.