Going back to the conversation about what moves the markets there were some good points made. I can certainly understand some of the confusion that can arrise when dealing with lower volume bars especially when it happens on wider spread bars. Most of the time the market moves after surges of volume / activity are seen and an inbalance is created. At some point the market regains balance and starts its methodical slow drift sideways up and down in a tighter range.
Think of the markets like a bus. It travels it's route up and down the streets picking up travellers. Now there is a rule to this bus and that's if your a buyer you can't get on the bus without a seller and vise versa. So the travellers pair up the best they can so that they may enter the bus route hopefully heading for their planned destination. Now as we know at each route there may be more buyers waiting than sellers so for these unlucky travellers they must wait to be partnered up if / when the bus returns to their bus stop (planned entry).
Now if you get on the bus and realize "oh shit this bus is headed the wrong way" (like getting on an eleavtor at floor 2, trying to get to the main floor but realizing it is headed up first to floor 30!) you have to pay to stay on the bus for the added time. If you get on a bus headed in the right direction well you golden as your entry fee covers your ride.
Now as it goes in life some people on the bus have deep pockets and some have pockets that are almost empty. So each time someone on the bus runs out of money (SL hit or margin call or a trader closing early because they realized they were wrong) they kick him off the bus and leave him alone and sad standing at the side of the road. So now we have a growing imbalance as the paired up travellers are no longer all in pairs.
The "ranging" periods (Acc or Dist) are the bus driving around town picking up and dropping off travellers until finally the bus is completely out of balance full of one side traveler or the other so the bus driver who is no longer making any money agrees to drive them all to Vegas (trending move) for a weekend party.
Once in vegas the driver starts his pick up process all over again until he has an unbalanced bus at which time another longer trip is involved so he can once again unload his bus... over and over again.
Think of the markets like a bus. It travels it's route up and down the streets picking up travellers. Now there is a rule to this bus and that's if your a buyer you can't get on the bus without a seller and vise versa. So the travellers pair up the best they can so that they may enter the bus route hopefully heading for their planned destination. Now as we know at each route there may be more buyers waiting than sellers so for these unlucky travellers they must wait to be partnered up if / when the bus returns to their bus stop (planned entry).
Now if you get on the bus and realize "oh shit this bus is headed the wrong way" (like getting on an eleavtor at floor 2, trying to get to the main floor but realizing it is headed up first to floor 30!) you have to pay to stay on the bus for the added time. If you get on a bus headed in the right direction well you golden as your entry fee covers your ride.
Now as it goes in life some people on the bus have deep pockets and some have pockets that are almost empty. So each time someone on the bus runs out of money (SL hit or margin call or a trader closing early because they realized they were wrong) they kick him off the bus and leave him alone and sad standing at the side of the road. So now we have a growing imbalance as the paired up travellers are no longer all in pairs.
The "ranging" periods (Acc or Dist) are the bus driving around town picking up and dropping off travellers until finally the bus is completely out of balance full of one side traveler or the other so the bus driver who is no longer making any money agrees to drive them all to Vegas (trending move) for a weekend party.
Once in vegas the driver starts his pick up process all over again until he has an unbalanced bus at which time another longer trip is involved so he can once again unload his bus... over and over again.
Today's zone = Tomorrow's opportunity!
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What I've noticed is in many of your posts you have marked wide bars with high volume with close off the low as "Effort to fall", I thought an effort to fall is a sign of weakness. Thank you.
Notice the first one on the left. This is a "news" bar. As Tom has said many times, "Don't play the reaction to the news, play the reaction to the reaction to the news" Or was that Pres?
