2Yr
Ui....where should you get other information than other "big players"? Well...you have the Bloomberg terminal. But everybody gets the same information. Anything else would be insider trading and a criminal offense.Which also makes no sense in your explanations.... Why should I build up a position, or liquidity, to then use it myself? The bottom line is that if I take a long position, for example, I have to buy my own position. And with short positions the opposite. This is simply wrong from a technical point of view. If one builds up large positions (>10 million USD), then one builds up one's own position one after the other until one breaks POC and a new POC is formed one after the other and so on. This is how you then drive the price in the direction you want. The price always follows liquidity, yes. So where does the most money lie. However, the average citizen cannot see this, because he usually does not have the software to do so.
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@Jubele No. 1 "Smart Money" has either insider information or simply through countless analysts or data centers (such as Blackrock) that scour the Internet 24 hours a day always more information than we have as retail information. If you think that "Smart Money" has no insider information, you are living in an illusion. In addition, "Smart Money" does not wait for news, but is already positioned in the market. No. 2 If "Smart Money" wants to build a position in Tesla, then they do not buy 10 million at once but buy piecemeal. They let the price go through a correction each time and use this sellside liquidity again to build up the next part of their position. This creates order flow. Liquidity is also built up by buy and sell stop losses. Double tops, double bottoms, chart patterns, swing highs, swing lows, trend lines, etc. are regularly swept (i.e. stopped out) during the order flow. If in a bullish order flow a lot of buy stops are triggered, this pushes the price down. This is free liquidity that Smart Money can use to buy again cheaper and without impact. Who can read Price Action does not need a program to see liquidity. Because exactly at such points is simply the most liquidity. Exactly that is the point of the posts. I want to show how you can see the whole thing and how on a regular basis certain liquidity sweeps cause a reversal in the price.
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2Yr
@TradingMelone Blackrock does not have a trading license. They are a liquidity provider, but not an active trader. You can also look at the licenses in the Bloomberg terminal. Patterns are of no interest to anyone in institutional trading. You buy levels and not patterns. That's one of the first things you get beaten into your head in a sensible company. Why shouldn't you buy a position over 10 million USD in Tesla at once? Tesla should have an approximate trading volume of 20 billion USD per day (I can't remember exactly). You can easily open a position of more than 50 million. With large positions it is normal that they are sometimes not directly filled. 10 million USD are simply children's birthday in institutional trading. I think you have no idea how much money is being traded. In forex trading, positions of several 100 million USD are common.
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@Jubele you want to be on krampf simply against everything I write. You do not even take the time to read. I have never talked in my text of 10 million only have I picked up your numbers in the comment. in the text I talk about liquidity providers and they are incidentally urged to trade all day. Which is why they also use algos. I said that through patterns retail is stopped out and not that institutions use patterns. You are probably yourself a trader at an investment firm and now think you can make me look stupid by actively misunderstanding everything I write. I have contacts to people who confirm exactly that and they are / were certainly not simple traders on any floor 😄 But I do not want to argue here because you're obviously just out to misunderstand everything. That's not what I'm here for :)
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