when i watch youtube these guys seem to know when the red bars are caused by short sellers or normal sellers or orders being canceled. how do they know? all i see them looking at is chart when they livestream and they like here red bar shorts are trying to scare the bulls by creating this red bar . here are shorts covering etc when green bar pops up. i watched the videos over and over and still cant figure out how they can tell. is it the location on the chart that tells them shorts vs regular sellers/buyers or something else? im trying to understand the "stuck traders" concept and being able to tell who is moving the chart seems to be a part of it as far as i can tell. the only time so far that i can tell cancelled orders or orders in general moving the market is when market opens and closes i see the chart move with no volume. and somewhat understand when traders are stuck on teh right side of the pump and dump and that they will slowly exit at every green bar afterwards
That's BS. With millions of shares traded in a particular stock everyday there's no way they can tell whether a block of shares that just got sold was profit takers,short sellers or market maker shenanigans. Especially not some youtube retail jagoff.
Tim sykes, ross cameron fous and just recently i came up on oliver velez (who seems to be the daddy of trading strategies used by almost every other youtube trader). they all seem to be able to identify who is causing the price move. At least in their videos.
Cant speak to the other 2 you mentioned but I've watched a bunch of Cameron's recap videos and on numerous occasions I've heard him say he has no idea what caused a big red candle. There's absolutely no way they tell if it was profit taking or short selling that caused it. All they can do is speculate about trapped bulls,short covering,etc.
That is why there are these terms D.A.P. Data Analysis Paralysis and K.I.S.S. Good Luck with your Analysis.
so basically when they say "shorts are trying to push price down" its an assumption just based on the fact that if he was shorting thats what he would do? But not something he could pick up from looking at data.
In general, Shorts are not interested in pushing the price down. They are only interested in earning tons of $$$$. When their view of a stock is on or will be on the downtrend, they short the stock. Professional writers are the ones who like to write 'shorts are trying to push the price down'. Manipulators might be interested in pushing the price up. They use tricks/social media/wisdom to fool the foolish lazy investors. Again, manipulators do these so as to earn tons of $$$$. Manipulators have to work as a group because they need tons and tons of $$$$ to push the stock (mostly penny stock) up. Some manipulators have been caught and thrown in prison. Next question : Why manipulators don't try to push the price down??!?!?!?!? And how many such manipulators have been thrown in prison? The answers are obvious.
I agree with @tomkat22 that it’s BS. When you’re watching (trading mentors) on youtube, you need to understand that most of them are a clever marketers, nothing more. Regarding sellers/buyers, the basic force of price determination in any market is supply and demand. Supply and demand is the fundamental driver of price. When demand exceeds supply or vice versa this is called a supply/demand imbalance, and these supply/demand imbalances are what causes price to move in a market and price will move until a new equilibrium is reached (i.e. until supply and demand are in balance again). On a side note, sometimes the big players with deep pockets have hidden agendas and will intentionally trap smaller traders, but that another topic on its own (it has to do with understaning order flow dynamics). Instead of following those youtube influencers (smooth talking marketers): Learn to spot potential supply / demand imbalances Then add to it Order-Flow Dynamics (How Price Moves and Liquidity seeking clusters of orders) And then overlay that knowledge with Price Action. Remember that nothing works 100% of time (there is no holy grail), but at least this way you should eventually start developing some trade logic and understanding the context of how markets works.
im just trying to figure out whether im not looking in the right places or those guys are just making assumptions based on their personal experience about who is moving the price. i know they use better platforms so i thought maybe the free platforms dont show something that paid platforms do and thats how they are able to tell. just so i dont spend time chasing my own tail on this one. and searching the internet for something that doesnt exist