Disliked{quote} txs for the answer, I've perhaps understood but i'm really not sure. You've said {quote} So, what you mean is what i've written in the screenshot below ? {image} But my thought was that, these big sell cumulative orders were stoplosses previous buyers. Am i incorrect ? {image} Thanks for your helpIgnored
Hello Thomasz,
first of all, you can't tell from your chart which time unit or asset it is. It also depends on how the market has developed in the past. If a market has been moving downwards for five years, for example, it is very unlikely that the lowest low has stops from long traders who entered the market six or seven years ago. As I understand it, the red circles on your chart show an increased number of market sell orders. That would indeed suggest that long traders are being stopped out. On my chart, the red circles show the volume that flows into the limit sell orders of the big players. And that alone is of course a big difference. If a price moves downwards and forms a new low, long traders from the past can of course be stopped out. These stops now come into the market as market sell orders, which are intercepted by limit buy orders from a big player. This would allow the big player in the EURUSD to collect the euro. Because the big player has created a new low, he automatically attracts short traders. The stops of these short traders now help him to push the price up. This creates several advantages.
1. The big player stops the short traders out.
2. He brings the collected euros into profit
3. By pushing the price up, he attracts new long traders.
4. He is able to buy the dollar again at a higher price level.
5. The long traders who come into the market later help him to push the price down more quickly.
As I have already shown in my videos, the entire procedure is not always easy to understand. In addition, it is particularly in the middle or at the end of a month that larger currency exchange transactions occur, where two friendly big players interact. This results in high volume peaks that are exchanged within seconds. This procedure is often confusing and not clearly understandable. Basically, it is very difficult to understand what 1 million market participants are currently planning in the Euro US dollar. I have also been wrong many times or have been proven wrong. In the end, however, that is not a bad thing because we learn something new every day.
I will continue to keep my fingers crossed for you.
Best wishes, Michael
Forget:That does not work, amateurs build the ark, pros the Titanic!
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