A Lesson On Market Manipulators
Here is the same chart used in the previous post. Something else is to be learned from the price action illustrated, and that is we are not dealing with a "free market", but a casino run by some outfits with practically unlimited funds to use to move prices whenever and however they damn well feel like affording.
In conjunction with the multple USD high impact releases Friday, there was this 100+ pips run up. The majority of currency traded was traded by the MMs (Market Manipulators: market makers, large trading houses like GS, large hedge funds, and sometimes central banks), who have huge amounts of money and credit to instantly get more when wanted. So, the bulk of the volume was theirs, not from retailers. Now, after the second high, which was the highest high, take a closer look at what happened to the trading activity.
As you can see, activity rapidly tapered off, eventually to the pre-release lows. Again, the majority of currency traded is by the MMs, and you can tell right away that they traded a lot less as they worked the price back down.
So, shall we ask the obvious question? If the multiple USD releases were all that good, enough so as to "have" the MMs drive the price up 100+ pips, then what in hell happened to justify the price falling back down 60% before the day was even over? Justification? You see, market prices are determined by the MMs, plain and simple. News comes and goes, sometimes a reason for a move one way or the other, but mostly just as opportunity for the MMs to jerk the price around to wipe others out and steal their money.
This is the market. Prices are not based on any sensible or cohesive and intrinsic value. Prices are what the MMs make them. And the MMs make prices change whenever they want, by any degree they want to afford, in order to wipe others out and steal their money. News, releases, etc., well they are most of the time just used for "timing" of some of the MMs moves. Sometimes the MMs will move prices "according" to the news, sometimes not, and often both ways, and even sometimes one of two ways more than once! We are not trading a "free market. We are trading a price manipulated market. It has always been that way and it always will be because those with the most money run things, and they run things their way!
All this being said, we can still profitably trade. It is all in learning how to under these conditions.
-tah
Here is the same chart used in the previous post. Something else is to be learned from the price action illustrated, and that is we are not dealing with a "free market", but a casino run by some outfits with practically unlimited funds to use to move prices whenever and however they damn well feel like affording.
In conjunction with the multple USD high impact releases Friday, there was this 100+ pips run up. The majority of currency traded was traded by the MMs (Market Manipulators: market makers, large trading houses like GS, large hedge funds, and sometimes central banks), who have huge amounts of money and credit to instantly get more when wanted. So, the bulk of the volume was theirs, not from retailers. Now, after the second high, which was the highest high, take a closer look at what happened to the trading activity.
As you can see, activity rapidly tapered off, eventually to the pre-release lows. Again, the majority of currency traded is by the MMs, and you can tell right away that they traded a lot less as they worked the price back down.
So, shall we ask the obvious question? If the multiple USD releases were all that good, enough so as to "have" the MMs drive the price up 100+ pips, then what in hell happened to justify the price falling back down 60% before the day was even over? Justification? You see, market prices are determined by the MMs, plain and simple. News comes and goes, sometimes a reason for a move one way or the other, but mostly just as opportunity for the MMs to jerk the price around to wipe others out and steal their money.
This is the market. Prices are not based on any sensible or cohesive and intrinsic value. Prices are what the MMs make them. And the MMs make prices change whenever they want, by any degree they want to afford, in order to wipe others out and steal their money. News, releases, etc., well they are most of the time just used for "timing" of some of the MMs moves. Sometimes the MMs will move prices "according" to the news, sometimes not, and often both ways, and even sometimes one of two ways more than once! We are not trading a "free market. We are trading a price manipulated market. It has always been that way and it always will be because those with the most money run things, and they run things their way!
All this being said, we can still profitably trade. It is all in learning how to under these conditions.
-tah