Market Makers Manipulate Market Prices
Sonicers,
Here is a partial excerpt from a reply I made to a FF referenced article. I think the subject is important for Sonicers to understand as a part of their learning how the market really works, so I have provided it here:
On any single day the Market Makers can whip or whack price 200 or more pips, all by themselves! Suppose nobody is trading. All the Market Makers have to do is to ping pong a single micro-lot order back and forth to themselves - sell higher and buy back, sell higher and buy back, etc., all the way up - and in this manner they can hit pending stop loss orders on shorts to give them liquidity to fill their own short orders. And if there are pending long orders higher up, they get hit too, for more liquidity for the Market Makers to fill their own short orders. And all of this can be done in the total absence of any other trading! If other trading is happening in the market at the time, it creates even more opportunities for the price manipulating Market Makers.
The Market Makers can manipulate prices all by themselves for hundreds of pips to carve out of the market immediate profits or pending future profits for themselves via the positions they close or the positions they take with the liquidity their price manipulations creates.
This is why we cannot know how price will move next. This is why we cannot know when trends will reverse. This is why "indicator dependent" traders fail.
-tah
Sonicers,
Here is a partial excerpt from a reply I made to a FF referenced article. I think the subject is important for Sonicers to understand as a part of their learning how the market really works, so I have provided it here:
On any single day the Market Makers can whip or whack price 200 or more pips, all by themselves! Suppose nobody is trading. All the Market Makers have to do is to ping pong a single micro-lot order back and forth to themselves - sell higher and buy back, sell higher and buy back, etc., all the way up - and in this manner they can hit pending stop loss orders on shorts to give them liquidity to fill their own short orders. And if there are pending long orders higher up, they get hit too, for more liquidity for the Market Makers to fill their own short orders. And all of this can be done in the total absence of any other trading! If other trading is happening in the market at the time, it creates even more opportunities for the price manipulating Market Makers.
The Market Makers can manipulate prices all by themselves for hundreds of pips to carve out of the market immediate profits or pending future profits for themselves via the positions they close or the positions they take with the liquidity their price manipulations creates.
This is why we cannot know how price will move next. This is why we cannot know when trends will reverse. This is why "indicator dependent" traders fail.
-tah
see the beautiful Volume.. {image}
