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Marketmakermethod

Market Makers in Crypto: Who Controls the Cryptocurrency Market?Functions of Market Makers Market makers perform several essential functions in the cryptocurrency market, including: Providing Liquidity: They ensure there is enough liquidity between buyers and sellers to maintain active market participation. Providing Quotes: They offer bid and ask prices at any given time, facilitating trades between market participants. Risk Management: Market makers manage trading risks and maintain a balanced risk-return ratio to protect their interests and those of their clients. Providing Advice: They supply market information and analysis to assist clients in making informed trading decisions. Improving Market Efficiency: By reducing the spread between buyers and sellers, market makers enhance overall market efficiency. Market makers in the crypto industry operate similarly to traditional market makers. They provide market liquidity, execute buy and sell orders instantly, and earn profits from the spreads between these orders. However, due to the relatively unregulated nature of the cryptocurrency market, there is no stringent code of conduct for market makers, and the technical demands for ensuring transaction security are higher. Market makers follow a simple principle: "buy low, sell high." This approach requires handling large volumes of transactions, sometimes up to tens of thousands per second. They use advanced algorithmic programs to monitor numerous parameters and recalculate forecast prices multiple times per second, thus providing market liquidity without incurring losses. Despite this, even sophisticated trading algorithms can falter due to rapid trade speeds or incorrect price predictions. During periods of high volatility, market makers might incur losses while trying to stabilize the market. Therefore, a stable or slightly fluctuating market is ideal for them, while days with significant price movements can lead to substantial losses. In essence, while regular market participants react to past events, market makers anticipate future market movements to set optimal buy and sell prices and determine order volumes. Cryptocurrency exchanges and market makers often collaborate closely. Some exchanges maintain their own market-making teams, while others partner with third-party market makers. This cooperation can take two forms: Direct Cooperation with Crypto Exchanges: Exchanges offer special programs for market makers, providing personalized trading terminals. Through APIs, exchanges share order book information and market depth with market makers, facilitating pricing and matchmaking. Indirect Cooperation with Crypto Exchanges: Market makers provide over-the-counter (OTC) market-making services through intermediaries or platforms. Market makers are crucial but not mandatory for liquidity provision on crypto exchanges. They must negotiate terms such as commission distribution and trading volumes with exchanges to ensure profitable and smooth cooperation. Additionally, they must adhere to exchange rules and external regulations to ensure legal compliance. From a trading mechanism perspective, market makers with internal exchange connections play a significant role in price determination, which can help prevent price manipulation to some extent. Their presence enhances exchange liquidity, improving user experience and loyalty, and making the exchange more profitable. Consequently, exchanges often offer discounts to market makers for their activities. ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
The true thinking process of the banks - Forex Master Pattern Hello there traders, in this article I have compressed information which will be useful for every trader. There is this trading methodology which very little know of (Even though its public information) that revolves around a market cycle which consist of an contraction, expansion, and trend. This article will just open the doors to your understanding of these principles, and will just go over the basics, to master it you must practice it a lot and identify many different zones in the markets. Practice Makes Perfect __________________________________________________________________________________________________________________________________________________________________ What will be gone over in this article? This article will explain what exactly are contraction phases, expansions, and trends and how to identify these different market phases. Get a basic understanding of what institutional traders look for and how they operate vs Retail. What exactly is the value line and how it acts like the "center of gravity". __________________________________________________________________________________________________________________________________________________________________ What is the Forex Master Pattern? The “Forex Master Pattern”, is a alternative type of Technical Analysis which shows the true psychological patterns of the Financial Markets. This pattern has 3 Phases, which is known as the Contraction, Expansion, and the Trend Phase, which will complete one market cycle in this term. This pattern also creates a concept known as the “value line,” which is the fair value zone or the neutral belief zone where buyers and sellers agree is the fair value. Consider it in terms of the center of gravity. This pattern is present on every timeframe and in every market with enough liquidity and volume, and shows the behavior, psychology and activity of retail, professional traders, institutional traders and investors and market makers. __________________________________________________________________________________________________________________________________________________________________ The Contraction Phase The contraction phase is the setup and it indicates a period that the market is in consolidation, with a tight and narrow range. During the contraction phase there is going to be low institutional volume and they are avoiding positions and trades. It is best to avoid trade entries in this phase and wait for a clear trend after the expansion. The Expansion Phase The expansion phase is the play and its when the institutional traders begin to accumulate positions. There are many things that institutional traders would do in this phase. If the institutional trader or "market maker", main goal is to buy the asset, they will drive the price lower with their money to draw in retail traders to place shorts and sell their positions which will generate liquidity for "smart money" to buy cheaper. and vice versa. If the institutional trader or "market maker", main goal is to sell then they will make the price go up a little with their own money to lure in traders who will buy their bags so that "smart money", can sell in a profit and overvalued. The Trend Phase The trend phase is the final phase that completes this market cycle. Once the institutional traders feel like it is time for them to start taking profits, will commence the distribution cycle which causes price to move down. All this profit taking from "smart money", will eventually lead retail traders to understanding that they were in the wrong side of the trade and the panic, liquidations, and stops start. Eventually they panic and start buying back in, and this generates liquidity for institutional investors and traders to take profits, leaving retail with overvalued bags, for the cycle to repeat itself again. For the short scenario it'll be a vice versa too, they will move price up with their own money, cause retail to believe the price is going up so that they get into wrong trades (Retail buys, Smart Money Shorts), they start accumulating short positions or selling their bag and with the trend drive price back to value or even below, and at this point retail again begin the panic, liquidations, and get stopped, and ultimately sell their bags to institutional traders who buy at a discount. This pattern is also similar to the accumulation and distribution cycle and are basically the same theories with different executions. __________________________________________________________________________________________________________________________________________________________________ What is the value line? Previously in this article I have explained how contraction zones create fair value lines. Value lines can be described as the average price and the neutral belief zone for price. It sorta acts like an center of gravity. Knowing the HTF value lines can be your key to success since you will understand the general direction of the market. Value lines help you visually understand what territory the market is in, like if its consolidating at value you should avoid entering any trade at all cost and wait for the expansion and perhaps the trend. These value lines and contractions can also be used to find certain broadening wedge ranges and the longer price stays in a proper broadening wedge the more volatile it will get. The broadening wedge starting from the origin of the contraction is rare to find but can create some pretty good scalping environments and conditions. Conclusion: Well I hope this was educational, and it gives you another way of understanding the markets. This article was pretty basic in understanding this pattern and methodology but hopefully now you have more awareness. The best way to start understanding these principles is to practice in the charts and learn to identify the three phases. This isn't a strategy but more like a theory or a concept which explains the behavior of the market. With proper understanding you can create many different strategies since this is extremely versatile and works on any market and timeframe if the liquidity is there. So go on the charts and try to identify the three phases and see how you can improve your trading game!.
Education
by Traders_Endeavors
2
LUNA/USDT ----> TUTORIAL (when and why take position ) HI guys we have some questions and now answer that. if you have any idea , you can comment . answers: 1 and 2 : if we had a strong sell movement it couldn't brake it without any react !! and now if it had broken it would pullback on that level. (caution : the price goes everywhere finally it has to ( again i repeat it : it has to) pullback that level. and why it has to pull back you must find answer on supply and demand orders. 3: when you have strong movement it hasn't enough time to settled price level but anyway it settle on another time. 4:thats joking if you think Russian or Ukraine people buy and price grows whenever other currency were approximately constant. the answer is exchanger and market makers. but why? they are take profit with 2 strategy. one ,take profit with liquid novice trader with raising unexpected price for many times . two ,they bought on 40$ level and now price is above 90$ so they need time to sell. and they may make another trap for trader they brake the highest historical price and when novice traders were trapped exchanger and professional trader take sell position. conclusion : when you see enough reasons for take buy position or sell position and price have enough distance from your levels find entry situation and DONT FORGET MONEYMANAGEMENT then take a your position that's not important after that price go where you just need money management and wait. be profitable.
Education
by rabinateghi
19
💰 Market Maker in Crypto Space. IntroductionGreetings, fellows! We are introducing a new article series about marketing making (MM) in cryptocurrency exchange. In these articles we will be focusing on the main MM strategies, current market trends and how to trade in this sphere. Firstly, it is very important not to get confused with the “market maker” meaning in the cryptocurrency sphere with the same term in classical markets. The only thing they have in common is that MM creates liquidity and it balances the market, and nothing else. In the classic MM, there is an agent who has to keep open the bid and ask orders with a particular (short) spread (between them), which is creating the exchange tool’s liquidity. • Who is usually a market maker in a cryptocurrency exchange market? Well, usually it's a small team, internal department, or maybe attracted specialists from the private companies. The team always includes a minimum one programmer and few traders (trading robot operators). • What is MM’s main goal? MM’s main goal is mercantile, all he wants is just to make money on an exchange tool manipulated by the agent himself. This goal is achieved by coin/token distribution into specific/perspective moments between the team members. For example, MM is forming an attractive graphic pattern while the market is growing to attract more potential customers. MM’s final goal is to choose the maximal amount of money or/and stronger cryptocurrency (BTC, USDT, ETH) they are planning to exchange into controllable “wrappers” Note: not every cryptocurrency project has trading and programmer teams that are ensuring the liquidity of their tokens or coins on the exchange market. Graphs below show the two typical examples, first one contains MM and the other doesn't. First graph clearly shows that trading bots have an impact on the tool’s price, spread and direction. We have a successful personal experience in this sphere. We were taking part in trading bots development and adjustment of trading bots on multiple exchange markets. Our plan is to have comments under each technical paragraph, where we explain and give real life examples. Next, we are going to analyze in detail the strategies and methods used to carry out this task, if we see that you are interested in such an article.
SEducation
by I.T.Analytics
2
Daily "Manipulations"So here is a perfect example how the Institutions operate on a daily and weekly basis and how order flow works. We got this gap because the institutions trapped traders into the believe that price would go higher and many orders were stuck there over the weekend. Then we got a small gap signaling buying pressure while in reality the institutions sucked in orders to build their position (maybe only short term in a bigger cycle). The gap also faked some people out because they believed that this was a valid double Top there. They then just went 3.5 Pips higher to trick people into more buy orders so they could prepare for the final big move. Just another day, same methods. Trading is all about probabilities and order flow that creates those patterns. On the lower timeframes those "patterns" are unreliable because all the pending orders and such create heavy noise at important levels and those patterns are more a result of that noise and HFT firms than a planned move within itself. So we should stick to higher timeframe confluences. But anyways, this is how it works. Cheers
Education
by PaperChazeTrading
Train your eyes to see this market maker's agenda.20181213 14:45 in EURUSD 15 minute chart London session, cc59 counting gave a "+9" and "rsi>70" labels near the green horizontal line (previous day's high) and the horizontal light blue line (cc59 resistance) making the prices between these lines a "resistance zone". Later on at 20181213 19:45 in New York session, the market makers made a wide range stop hunting in both up and down directions forcing many investors to close their positions with losses. In this stop hunting, the price went up and briefly entered the resistance zone defined earlier. Investors with trained eyes would have seen this price shooting as a good opportunity for a short selling with a target of +50 pips downward. If they missed that moment, there was a second chance for that 45 minutes later. The profit taking target of 50 pips would have been reached within 2 hours. The image below was a snap shot from my Android smart phone that rendered EURUSD chart in TradingView with Graph Reader Pro 4.0 invited-only-script. 2.bp.blogspot.com
Education
by nimit.chomnawang
Education and recapMARKET MAKER METHOD: Trade recap 10/24/18 - Took a LOSS, stopped out on BUY trade, day 3 downtrend A2 formation took place which is confirmed through 3 levels of intraday drop. Move was big as well which is normal behavior on day 3 of a cycle. Cycles are based on 2 to 3 days. Uptrend cycle forms as W V V and Downtrend cycle forms as M A A. Pattern formations may not be perfectly visible, but rather a variation thereof. They generally can take place straight out of the Asian range, at London or U.S. open. The strongest pushes/moves(150+ PIPs) are made on Day 1 of cycles ("W" and "M") and Day 3("V2" and "A2"). I am very confident we'll see the new uptrend cycle begin Thursday or Friday so look out for a "W" formation. I will be targeting 144.10 as my prime BUY entry for 4 main reasons: 1. A2 end of downtrend cycle confirmed 2. Daily FIB level of 144.10 lines up with next Asian range setup 3. Market Maker HAS TO GET HIS MONEY BACK! Sellers will be taken out, Market Maker bags huge profits to clear the boards as week comes to an end. 4. High Impact news coming up Thursday and Friday which Market Maker uses to make big moves as needed to complete the current cycle and or formation of the day. News is all a bunch of bull$h*t and just used by the Market Maker to complete the pattern. This is why the moves hardly ever match the news results. P.S. Take what you like from my review, use proper risk management, do your own analysis, do not rely solely on indicators/support/resistance/trade signals. I stick to the Market Maker Method because it's THE ONLY STRATEGY that's made me insane profits and makes the most sense to me.
Education
by GrandeHustleTrader
2