Folks, forget T/A since prices are made by the Market Maker (MM) arbitrarily to fit his own case. Remember that guy is there to provide, in theory, liquidity. As a reward for this "service to the mankind" he is allowed to make profits of his own. Some MMs have taken this literally and it doesn't bother them to let the price fall 30%, 40% or even more than 50% to maximize their profits as much as possible. One can say MMs are greedy thieves who want to legally rob you, some call them even "blood suckers". For example: if you buy long a stock or option the MM will let the price fall, just to panic you, so that you close with a loss. It's a psychological game. That means, the price is determined by the MM only, not by support&demand by the crowd. Think about it, and forget all the T/A crap. (yes, I belonged to that camp too, long ago)
Do you think market makers look at charts at any given moment during the trading day to go along with their quote (bid/ask) screens ? Do you think market makers talk to those next to them or with whom they work with about supply/demand ? I already know the answers to the above. P.S. If your not sure...you can find the answers on google because a few of them do discuss what's on their monitors. Mark
I know how to protect myself from their dirty tricks. I'm better than those MMs as I have many times beaten them, even overtaken them their instrument from their hand
I didn't laugh at your post, I laughed at your quote. Your post was spot on. When you start believing the "unsubstantiated gossip" that is posted on this site without first validating it for yourself . . . you begin to become no better that those that post the conjecture.
Do market makers matter if they step aside during a fast market? Does a market maker than runs in silicon exercise free thought?
Pretty much what was described by Wyckoff long long time back. On the other hand,classic TA stuff does provide some nice signals if you fade them based on market context. Chris.
quite. i blame the market makers. its all their fault: why i lose every day why they sold out of my newspaper this morning, why my breakfast was burnt bin laden, why my girl left me, etc....
Every day I see that. Currency prices, commodity prices, bond futures prices, index prices, falling 50% just to rip off some players. LOL! You are probably talking about illiquid equity markets where you play against your liquidity provider who is much richer than you. This is not a general rule about the markets I suggest you learn TA the right way and trade liquid markets. You will find out that it is a rewarding experience.