Let's discuss the price action when big players enter or exit the markets using different type of orders.
There are two types of order: market order, and pending order(stop and limit).
If a big player enters or exits the market using a ‘buy' market order, he will push the price up. So the price action is just a "straight up" bar. (without any tiny retracement?)
If a big player wants to enter the market using a "buy" stop order(a pending order above the current price.), when it gets filled, the price action is just like the market order. it's just because when the price hits the target price of the stop order, the stop order becomes a market order.
If a big player wants to exit the market using a "buy" stop order. that must be a stop-loss. the price action is also like a market order.
For the limit order, I really know nothing about the price action. because it will never become a market order. I don't know how it works. Any ideas?
And which type of orders the big players prefer when they trade? Will they just put some pending orders and leave? Or just watch the market all the time(or use a computer program to watch) and use market order to enter or exit the market?
There are two types of order: market order, and pending order(stop and limit).
If a big player enters or exits the market using a ‘buy' market order, he will push the price up. So the price action is just a "straight up" bar. (without any tiny retracement?)
If a big player wants to enter the market using a "buy" stop order(a pending order above the current price.), when it gets filled, the price action is just like the market order. it's just because when the price hits the target price of the stop order, the stop order becomes a market order.
If a big player wants to exit the market using a "buy" stop order. that must be a stop-loss. the price action is also like a market order.
For the limit order, I really know nothing about the price action. because it will never become a market order. I don't know how it works. Any ideas?
And which type of orders the big players prefer when they trade? Will they just put some pending orders and leave? Or just watch the market all the time(or use a computer program to watch) and use market order to enter or exit the market?