GBP/USD Long trade
The price dropped below the whole number 1.31000 and activity increased significantly.
The price dropped below the whole number 1.31000 and activity increased significantly.
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DislikedGBPCAD Bullish MM behavior? Last week we printed the highest volume since April on red candles with long lower wicks and closes back above the 1.85000 (Whole Level). That isn't bearish continuation, that's bulls grabbing liquidity under a key level. Every push below the WL gets hit with stopping volume and price is lifted right back up. If this was real bear pressure the level would have broken already. Classic MM play: run it down, fill orders, hold price above the level. When they're done loading, they'll decide where to take it. We cannot know...Ignored
Disliked{quote} GBPCAD Bullish MM behavior? This chart outlines the day of high volume and the inset rectangle shows the high volume separate from the volume for the rest of the day. As you can see, the high volume we are concerned with is a huge % of the total day volume..... maybe 85-90% of the total. Look closely and see that most of this volume is in the upper 30% of the total range of this day! This gets us back to the fundamental: Buy low, sell high! So, it looks like this is an indication of bearishness, not bullishness. Of course, we still do not...Ignored
Disliked{quote} GBPCAD Bullish MM behavior? Thanks for the explanation, TAH. I get the point about most of that daily volume showing up in the upper part of the range. I might be completely wrong and have missed some piece of the puzzle. The reason I shared the bullish read is because on H4 we had repeated increases in volume right at the lows, every time price dipped under the whole level. Each push down got hit with notable activity and price was pulled back up right after, which to me still looks like MMs using the drops to load orders. So I fully understand...Ignored
Disliked{quote} Let's assume for a moment that it is bearish. Okay, the MMs & big money outfits are driving the price down, but the lower it goes the better the "bulls" see their chance for profit. All they need is encouragement. So, the MMs & Big Money put on their bull act....enough orders to spoof the market price upwards..... and the bulls jump in believing it really is destined to be bullish.... at which time the flood of buys is readily met with agreeable counterparties. Guess who they are! Yep, the bears close their "instigating buys" for small profit...Ignored