quoting TAH:
quoting loeil:
Does the following sound correct?:
So at the end of markdown there will be MM buying to close shorts. MM now are out of market (temporarily)
If the MM plan to move price up, the MM need to buy to accumulate prior to markup.
So, there will be two rounds of transactions--buying to close short positions (MM exit market), then subsequent buying to initiate long positions (MM re-enter market). These two rounds can occur close together, e.g. if MM close shorts and then initiate longs advantageously immediately thereafter at low prices, or spaced out, e.g. if MMs instead re-enter by buying in small amounts over an extended period of time (accumulation).
Also, sometimes the MM re-enter by more visible large transactions we can see as (often off-hours) large spikes in volume
QuoteDislikedPVSRA, Lesson Learned
High volume at lows does indeed denote buying. What we don't know is if it is buying to close shorts, or buying to open longs, or both.
quoting loeil:
QuoteDislikedUJ - another example that someone buying there.
Does the following sound correct?:
So at the end of markdown there will be MM buying to close shorts. MM now are out of market (temporarily)
If the MM plan to move price up, the MM need to buy to accumulate prior to markup.
So, there will be two rounds of transactions--buying to close short positions (MM exit market), then subsequent buying to initiate long positions (MM re-enter market). These two rounds can occur close together, e.g. if MM close shorts and then initiate longs advantageously immediately thereafter at low prices, or spaced out, e.g. if MMs instead re-enter by buying in small amounts over an extended period of time (accumulation).
Also, sometimes the MM re-enter by more visible large transactions we can see as (often off-hours) large spikes in volume