Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
- #48,962
- May 15, 2013 7:47pm May 15, 2013 7:47pm
- Joined Nov 2008 | Status: Trader | 50,194 Posts
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
- #48,963
- Edited 8:15pm May 15, 2013 7:49pm | Edited 8:15pm
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,552 Posts
- #48,964
- Edited 9:31pm May 15, 2013 9:05pm | Edited 9:31pm
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,552 Posts
Daily Market Moves, Who's Behind Them?
Aside from intervention (price manipulation) by central banks, on a daily basis who is behind the market moves?
Two groups predominately influence price: market makers and a group referred to as Smart Money (SM), which involves bank trading desks, hedge funds, large corporations, essentially any Tom, Dick or Harry outfit with the money and will to use it to influence prices.
The market makers tend to be neither bulls nor bears. They are just leeches that put on their own trades in advance of manipulating prices from one area of orders they just filled for commissions, to another area of orders waiting to be filled for commissions. In busy hours they will more likely "enhance" the move in the direction they see that SM wants the prices moved, thereby encountering least resistance to the move to get price where more SM orders stand, and more commissions are waiting to be had. In "off hours" of the market, there will be lower resistance to moves either way, which explains the sometimes sudden and contrary moves as market makers take price to some level to fill orders so they can make commissions. The thing to realize here is that moves put on by market makers frequently tell you if SM is a bull or a bear because the move is to enable SM to get orders filled at more ideal prices. If the moves are up, SM is a bear and is selling at highs. If the moves are down, SM is a bull and is buying at lows.
It really doesn't matter who is in the catagory of Smart Money (SM). What is important is these are the big bucks players that market makers cater to. For example, if SM is a bear and has just engaged in heavy shorting which has driven the price down, but now the price is too low for them to desire to continue to short at current prices, then price action stops. Sometimes there follows a quick "resurrection" of the price on much less volume, which would be the market makers taking the price back higher because that is where SM has located their next batch of sell orders. When such upwards price action is viewed, it is often misinterpreted as bullish. It isn't. It is just market makers hiking the price to get it higher so they can resume collecting commission on SM's short orders that have been placed higher.
The market makers and SM work in concert. SM sets the tone of the market, being either bulls or bears and switching from time to time. The market makers slave themselves to SM, being just leeches out for commissions and some insider trading of their own, based on where they see there are orders to be filled and commissions waiting to be made, and the opportunity to put on their own trade to profit by the price move they are about to undertake.
Once you understand all of this, you begin to understand why price & volume analysis at important S&R areas (PVSRA) is so effective. You begin to understand the truth in the statement, "Important is not where price is going, but if bulls or bears are moving it!" Who is behind the daily market moves? Find out and strategize accordingly.
-tah
Aside from intervention (price manipulation) by central banks, on a daily basis who is behind the market moves?
Two groups predominately influence price: market makers and a group referred to as Smart Money (SM), which involves bank trading desks, hedge funds, large corporations, essentially any Tom, Dick or Harry outfit with the money and will to use it to influence prices.
The market makers tend to be neither bulls nor bears. They are just leeches that put on their own trades in advance of manipulating prices from one area of orders they just filled for commissions, to another area of orders waiting to be filled for commissions. In busy hours they will more likely "enhance" the move in the direction they see that SM wants the prices moved, thereby encountering least resistance to the move to get price where more SM orders stand, and more commissions are waiting to be had. In "off hours" of the market, there will be lower resistance to moves either way, which explains the sometimes sudden and contrary moves as market makers take price to some level to fill orders so they can make commissions. The thing to realize here is that moves put on by market makers frequently tell you if SM is a bull or a bear because the move is to enable SM to get orders filled at more ideal prices. If the moves are up, SM is a bear and is selling at highs. If the moves are down, SM is a bull and is buying at lows.
It really doesn't matter who is in the catagory of Smart Money (SM). What is important is these are the big bucks players that market makers cater to. For example, if SM is a bear and has just engaged in heavy shorting which has driven the price down, but now the price is too low for them to desire to continue to short at current prices, then price action stops. Sometimes there follows a quick "resurrection" of the price on much less volume, which would be the market makers taking the price back higher because that is where SM has located their next batch of sell orders. When such upwards price action is viewed, it is often misinterpreted as bullish. It isn't. It is just market makers hiking the price to get it higher so they can resume collecting commission on SM's short orders that have been placed higher.
The market makers and SM work in concert. SM sets the tone of the market, being either bulls or bears and switching from time to time. The market makers slave themselves to SM, being just leeches out for commissions and some insider trading of their own, based on where they see there are orders to be filled and commissions waiting to be made, and the opportunity to put on their own trade to profit by the price move they are about to undertake.
Once you understand all of this, you begin to understand why price & volume analysis at important S&R areas (PVSRA) is so effective. You begin to understand the truth in the statement, "Important is not where price is going, but if bulls or bears are moving it!" Who is behind the daily market moves? Find out and strategize accordingly.
-tah
- #48,966
- May 15, 2013 9:47pm May 15, 2013 9:47pm
Daily Market Moves, Who's Behind Them? Aside from intervention (price manipulation) by central banks, on a daily basis who is behind the market moves? Two groups predominately influence price: market makers and a group referred to as Smart Money (SM), which involves bank trading desks, hedge funds, large corporations, essentially any Tom, Dick or Harry outfit with the money and will to use it to influence prices. The market makers tend to be neither bulls nor bears. They are just leeches that put on their own trades in advance of manipulating prices...
Btw any word from JRissa prof tah? havent seen him in a while.
Price Is The Best Indicator Itself.
- #48,967
- May 15, 2013 9:52pm May 15, 2013 9:52pm
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,552 Posts
{quote} very prajna
- #48,970
- May 15, 2013 11:06pm May 15, 2013 11:06pm
- Joined Jan 2007 | Status: Trader | 11,838 Posts
GM - some pre FO dollar weakness has sent € down and UJ up. I bought UJ as it moved up above its mini resistance at 102.23 and set my TP at yesterday's Asian Session high of 102 42 and that just got hit, so a nice start to my day chart will follow ....
chart will follow ....
Trading Levels with WRBs
- #48,972
- May 15, 2013 11:17pm May 15, 2013 11:17pm
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,552 Posts
- #48,973
- May 15, 2013 11:32pm May 15, 2013 11:32pm
- Joined Jan 2007 | Status: Trader | 11,838 Posts
GM - some pre FO dollar weakness has sent € down and UJ up. I bought UJ as it moved up above its mini resistance at 102.23 and set my TP at yesterday's Asian Session high of 102 42 and that just got hit, so a nice start to my day
Trading Levels with WRBs
- #48,974
- May 15, 2013 11:39pm May 15, 2013 11:39pm
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,552 Posts
- #48,975
- May 15, 2013 11:48pm May 15, 2013 11:48pm
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,552 Posts
- #48,976
- May 15, 2013 11:49pm May 15, 2013 11:49pm
- Joined Jan 2007 | Status: Trader | 11,838 Posts
For those interested in intra day trading this post on the FF News page is a good read and is why I have to use a different platform for some of my charts 
<LI class="story detail">“Market Time” Determines Chart Time
http://www.forexfactory.com/attachme...1&d=1368642293
From seekingalpha.com
http://www.forexfactory.com/resource...tory-quote.png
Most professionals who use charts generally have two favorites; one time frame for momentum and a second, lower time frame chart for signals. But, even those two time frames are going to vary based on market time. "Market Time" to a professional means the speed of the rate of change of price, which is essentially the definition of "volatility". As volatility picks up or slows down traders need to adjust their "view" of the market also. During times when markets tend to be slower, such as the Asian session, traders lean toward longer-term charts. For example we may go with a ... (full story)
<LI class="story detail">“Market Time” Determines Chart Time
http://www.forexfactory.com/attachme...1&d=1368642293
From seekingalpha.com
http://www.forexfactory.com/resource...tory-quote.png
Most professionals who use charts generally have two favorites; one time frame for momentum and a second, lower time frame chart for signals. But, even those two time frames are going to vary based on market time. "Market Time" to a professional means the speed of the rate of change of price, which is essentially the definition of "volatility". As volatility picks up or slows down traders need to adjust their "view" of the market also. During times when markets tend to be slower, such as the Asian session, traders lean toward longer-term charts. For example we may go with a ... (full story)
Trading Levels with WRBs
- #48,978
- May 15, 2013 11:56pm May 15, 2013 11:56pm
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,552 Posts
- #48,979
- May 16, 2013 12:06am May 16, 2013 12:06am
- Joined Jan 2007 | Status: Trader | 11,838 Posts
@ TAH.....AU +120; GU +560; EU +20 
you're on fire......but do you ever sleep 
you're on fire......but do you ever sleep Trading Levels with WRBs
- #48,980
- May 16, 2013 12:15am May 16, 2013 12:15am
Thanks for the explanation Prof. Tah, another lesson learnt in PVSRA 
{quote} The Frankfurt open resulted in a hiccup up and then a straight shot for lows, and then higher trading coming in as the price approached the half number area. If these SMs were bears, they'd not have done that. I could be wrong, but safer to take the trade off and wait to see what further analysis yields. They might have just been shooting down to take profit, figuring on LO hiking prices up for more shorting, and that they'd resume shorting then, too. I am waiting to see if that is the case, and if it is then I plan to also re-enter short...