I am actually open to the idea there might have been something fishy going on like a central bank currency war.
This type of price action seen during the decline is commonly caused in short term trading from passive distribution alogos which are moving very large positions into or out of a market over time at a set rate. In the futures market many large funds use volume distribution alogos which push a certain number of shares or futures onto the market based upon the amount of market volume over each minute, volume not generated by the alogo itself.
But, the bottom line is... It was a strong downtrend with price far below mean and there was no sign of a severe crash or capitulation. There was no reason to be bullish until the run ended. All the analysts hyping how overvalued the pound was scared me away from any long trades until recently. Very negative news like that was hitting the wires just before the run took off.
This type of price action seen during the decline is commonly caused in short term trading from passive distribution alogos which are moving very large positions into or out of a market over time at a set rate. In the futures market many large funds use volume distribution alogos which push a certain number of shares or futures onto the market based upon the amount of market volume over each minute, volume not generated by the alogo itself.
But, the bottom line is... It was a strong downtrend with price far below mean and there was no sign of a severe crash or capitulation. There was no reason to be bullish until the run ended. All the analysts hyping how overvalued the pound was scared me away from any long trades until recently. Very negative news like that was hitting the wires just before the run took off.
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"Don't fear a bubble until it starts to burst."