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Marketmaker

Short-term and intermediate-term targets for COIN (ICT)ICT traders and "SMC" traders will be familiar with most of the Market Making ideas on here. For traders who aren't familiar with any of the terminology: Buyside Liquidity refers to where we expect Short positions to get stopped out when Price runs on old Highs. We anticipate Order Pairing at these levels where Smart Money Sell Orders are paired with losing Short traders who're forced to Buy at a "Premium." Sellside Liquidity refers to where we expect Long positions to get stopped out when Price runs on old Lows. We anticipate Order Pairing at these levels where Smart Money Buy Orders are paired with losing Long traders who're forced to Sell at a "Discount." I won't explain what Order Blocks are in detail here. I'm not an expert on Order Block Theory and ICT teaches it over on his Youtube Channel for free. Basically, we're looking at theoretical price levels that should be "supported" or "resisted" in the traditional retail trading sense based on Institutional Order Flow. Scenarios I'm considering: 1) Price runs down to the Preliminary Target and then makes a small rally back to the Gap before reversing back again to make an aggressive run down to the Main Target levels. After the Main Target has been reached, we'd anticipate an aggressive rally back up. 2) Price crashes straight through to the Main Target levels (short-term Bearish ) and then rallies to target the Gap (intermediate-term Bullish ) and to potentially higher Buyside Liquidity levels (with the darker green areas representing more ambitious Price Targets). 3) I'm wrong and Price recovers at the current choppy Gap Filling area and rallies straight up to take out the Buyside Liquidity immediately. 4) I'm completely wrong and Price does nothing that I'm anticipating based on the logic I've outlined here. Some traders might wonder how what I've outlined is any different from traditional Support / Resistance levels or Supply / Demand zones. The main difference is the logical framework around liquidity and order flow combined with ICT's Top-Down approach and Time & Price Theories. ICT traders are anticipating targets based on an Imbalance or old Highs and Lows. We're always thinking "to and through" as opposed to the Price respecting some Support / Resistance level unless there is a valid context such as Institutional Order Flow. If you're interested in the concepts here, you can check out ICT's Youtube channel. I'm not affiliated with ICT in any way and I'm not a paying student of his. He's been making most of his elite content available for free in 2022, so everything I've learned is through his free content. Most of the "SMC" concepts out there are taken from ICT, so I would recommend going to the source to learn. Note that ICT does not consider volume. I used to rely on volume all the time, especially when applying Wyckoff and "VSA" strategies. I no longer consider volume as much as before, but I do glance at volume (real and tick volume) for markets with centralized volume across a long span of time on the HTFs to make sure there is confluence with my theories around accumulation, re-accumulation, distribution, re-distribution, and manipulation. This is why I bothered to mention it on the chart (orange box) where we do see a heightened level of contracts traded within this range. Also, we know that Cathie Wood and other institutional investors have an interest in accumulating within this range. That said, I still prioritize HTF liquidity narratives over anything based on volume.
NASDAQ:COIN
by Intermarket_Trader
15
MarketMaking and MarketMaker. What is it and who is it?All participants in financial exchanges can be divided into two categories - market makers, who set the mood in the market, and market makers, private investors with small capital. Market makers ( they are in minority ) will always manipulate market makers ( they are in majority ). What is a market maker, who he is, what he does at the exchange and why he is needed? WHO IS A MARKET MAKER AT THE STOCK EXCHANGE? This is a professional in the market with very large money, without whom trading is impossible - because this figure is considered a key player in the market and moves the price. Most often, this is the whole financial organization. MARKETMAKER is the one who creates and maintains the liquidity level of exchange , currency , cryptocurrency , futures instruments , etc. It is only possible to make transactions on the market through the market maker, who regulates the processes so that the exchange is not dominated by only sellers or buyers. The MARKETMAKER is obliged to buy even if the market is dominated by sellers and even if it leads to losses. And when the market is dominated by buyers, the market maker must sell in order to balance the market. The main purpose of the market maker is not to make money, but to regulate supply and demand, to maintain liquidity. CATEGORIES OF MARKETMAKERS Large commercial banks, but not by themselves, but united in groups: they are called institutional market makers. Brokerage companies Dealing centers Investment funds Private investors with significant capital. WHY DO WE NEED A MARKETMAKER? It stabilizes the market, controls price movements, satisfies traders' demand. And since large financial institutions take on this role, they can be both sellers and buyers. The market maker makes a huge number of deals every day and ensures the liquidity of assets. The peculiarity of their work is that market makers can support the quote both in the buy and sell direction simultaneously on the same financial instrument, which makes the price move more smoothly and price gaps disappear. TASKS OF MARKET MAKERS Ensure profitable deals for all participants To maintain sufficient liquidity for any instrument throughout the trading session To accumulate orders within the instrument being traded Find and consolidate the best price offers and record them in the price book Provide all participants with information on current quotes as soon as possible WHAT AND HOW DO MARKET MAKERS MAKE MONEY? The best way to make money on the exchange is to be able to correctly predict large price movements and timely open positions in this direction. No market maker can do it on a large scale, but a small impulse is enough to start the process of a large price movement. And for this market maker first forms a trend in the direction he needs, after which he acts in the opposite direction. Thus, the market maker makes a profit, while other participants lose more or less. Since market makers are the first to review current orders, they are the first to find out about the emergence of a trend in one direction or another and do everything necessary to balance the market and not allow a large surge of volatility. For the fact that he keeps the market price of the instrument in the predetermined limits, the market maker receives a significant discount on the commissions. And his profit is the difference between the bid and ask prices, which is called the dealing spread. Because the exchange is interested in maintaining the liquidity of assets, it encourages healthy competition and advocates the presence of several market makers on one floor. It reduces the cost of transactions, increases the speed of transactions and makes pricing transparent. Even the exchange rules often contain a clause that a deal is legal if a market maker is involved, i.e. it is quite a significant and influential market player. HOW DOES THE MARKET MAKER WORK? He establishes a connection with his clients through a program, analyzes the market and executes orders of his broker's clients. Often he prefers to work with mid-sized brokers to have the necessary volume of transactions to make money. Marketmaking. Order-Making and Order-Making. The function of Order-Making is to watch a particular company's stock and make predictions. Order-taking is to execute traders' orders and take additional profits. HOW DOES PROFIT TAKING TAKE PLACE? Like other market participants, market makers can also incur losses, which occurs if a position is chosen incorrectly. But due to the fact that market makers work with large volumes of trades and a large number of clients, they always have an opportunity to cover their losses. Regards! R.Linda!
Education
by RLinda
30
A View From The Institutional Perspective This is usually on a range chart when I use them so I hope I converted them over alright. This gives you a Market Makers view of the market. Usually I would invert the scales like the top indicator is. Does it look familiar to anyone? Just wondering ho many use things like this. Personally I find Realtime volume footprint chats to be fascinating. Also this maker maker style chart is a great tool to see why the market moves the way it does, especially if you use it to see what happened on a losing trade. I admit I there is still so much to learn when it comes to this and VFPA but supply and demand is as simple as it gets. Hope this helps someone. Try looking at it on ranged charts as well. It looks different and I prefer the bars to any style candle but I couldn't get this to work with the bars not in ranged charts. I mainly us it to see where I went wrong in a trade and learn from it but it can be use for so much more. Footprint charts will show you exactly where the market is moving to at any given time if used properly. Free tools I use in conjunction: bitcoinwisdom.io aggr.trade I use many more such as Sierra Charts, Motive Wave, Hyblocks, Bookmap and a few more but they can get pricy. The above are free and paint a nice picture. Bookmap is sort of free but it is my least favorite but is easy to use and well supported. I sort of hope the bear market is not over because I like to use that time to study and learn new things as well as prepare for next bull. According to cycles I don't see how it could be over. Usually a bear lasts at least a year and crypto usually 2. I mean it is never always bearish there are some bullish moves in them but the majority is downtrend and sideways range. Sideways markets are a great time to truly test your trading skills. It seems easy just looking at it but in my experience it is anything but and very hard to extract profits from. It is why I expect to see the markets reverse very fast to really wreck reckless less experienced traders. As soon as you get comfortable in a nice long BAM! The DROP! That is a terrible way to think and I still have problems with it personally. is a terrible way to think when this is happening cause you miss out on a lot of opportunities waiting on the other shoe to drop. I hate that I have grown some bearishness in my older age. I guess like everything there must be balance. I hate these but here it is: None of this is financial advice because I am not getting paid to provide it and am not your financial advisor. This is all for fun and educational purposes and only intended to assist you on your trading journey not keep losing in the markets. Anyone who says its easy and quick is full of crap or got really lucky once and will eventually end up where they were before. The only way to succeed in finance and trading is to learn all you can and progress slowly. Not the most fun but the only way I have seen truly work long-term. Remember we are competing with some of the smartest minds on the planet and it's not necessary to beat them. We can work with them or grab profits from their gains. Going against them is not something I ever recommend doing. They are not the enemy anyways, just made out to be, I believe we our are own worst enemies in trading especially in the beginning. This is something I will continue to be learning probably right up to the day I die or eventually retire but doubt I would stop trading even then. Also I will never ask you for money or crypto for anything. You should keep all your assets and never pay anyone for signals. Learn to see your own and if you are going to pay for something pay for good education from a real professional. It is easy to check their references and most don't share their trades till after the trade is over. Everything I do I do for free, no premium, no telegram or discord. Had a free telegram group but no time to maintain it. It was for fun Cryptoholics Anonymous and G3N3S1S TR4D3ING but I just closed them as it was too time consuming. Please be very careful and do not lose your hard earned assets to scammers or become liquidity for some random group offering trade signals. Personally I don't have much free time so I am not on as much as I would like to be but I try to check in as often as I can. Enjoy. I suggest you seek out as much information as possible if this interests you. It has made a difference i my trading, added an edge but it is hard to chart for others to see. At least it is for me anyways. Remember Capital Preservation is key and risk management is key to capital preservation. I know everyone is screaming that now and they usually do during a bear market but that all goes away when the market turns bullish. Just something to keep in mind.
Education
by Z3R0-G3N3S1S
1
Who is the MARKET MAKER and how they manipulate the market ?!!!!-WHO ARE THESE PEOPLE, WHY ARE THEY SO MEAN AND MANIPULATIVE -I SWEAR I WILL NEVER TRADE CRYPTO AGAIN ITS ALL PUMPS AND DUMPS -AAAGGHHH NOT AGAIN....they stop hunt me again and I am rekt once more. -THESE MARKET MAKERS ARE FULL OF ---- . yup, we have been all there my friends I get your feelings, I really do! but you think market makers are evils and are here just to manipulate the market? for real? bare with me for a couple of minutes and I will break it down for you. WHO IS THE MARKET MAKER A market maker is a simple man, but this simple man has a lot of money and with a great amount of money, comes great amount of power. let me borrow a sentence from 'investopedia' so I can introduce you to this simple man: "The term market maker refers to a firm or individual who actively quotes two-sided markets in a particular security, providing bids and offers (known as asks) along with the market size of each. Market makers provide liquidity and depth to markets and profit from the difference in the bid-ask spread." did you notice that? "Market makers provide liquidity and depth to markets.." so it is fair to say that their existence is crucial for every market. without market makers, there may be insufficient transactions and fewer investment activities, which means you can not buy your favorite altcoin/asset at a certain price because there is no one willing to sell to you. it's simpler than you think, market makers provide deals in the market, they offer 'x' amount of securities at a given price (bid) and also offer to sell 'x' amount of securities slightly higher than where they bid (ask). When an investor initiates a trade they will accept one of these two prices depending on whether they wish to buy the security (ask price) or sell the security (bid price). I also borrow the last sentence from 'investopedia' xoxo HOW DO MARKET MAKERS MAKE PROFIT? the difference between their bid price and ask price is what we call 'spread'. if the bid price of a stock is $10 for example, and the asking price is $11, then the spread is $1 (or 9%). if I buy one share of that stock at 10 and sell it at 11 I will put $1 in my pocket as profit. but market makers make a trade with spreads as low as $0.01. why? we will get to that very soon, what important here is that even in small spreads you can make a lot of money if you are investing with A LOT of money, and boy they do have a lot of money. as I mentioned earlier they keep the spreads really low for multiple reasons: the obvious reason is to make the market moves slightly with a natural flow which we can witness in liquid markets such as forex or Bitcoin for instance, the orderbooks are always tight. another reason is the exchanges that offer different market makers to come and heal their order books and 'depth'. so there will be a domestic rivalry between market makers as well in order to execute their trades before anyone else and they will keep the spreads as low as possible. another quote from 'investopedia' which is the sponsor of today's article (lol): "Market makers must operate under a given exchange's bylaws, which are approved by a country's securities regulator, such as the Securities and Exchange Commission (SEC)." WHAT WILL HAPPEN IF THE SPREAD IS HIGH? you will die.. Nope, it was a stupid joke ffs when the spread is high the depth of the market is shallow, and when the depth is not deep enough, any player with a fat bag can move the market in any direction that they want. what is this 'depth'? glad you asked: "Market depth refers to a market's ability to absorb relatively large market orders without significantly impacting the price of the security." (by order of the investopedia) Market depth can be evaluated by looking at the order book of an asset/stock/..., which consists of a list of pending orders to buy or sell at various price levels. On any given day, there may be an imbalance of orders large enough to create high volatility, even for stocks with the highest daily volumes. are we done here? you all understand? good lets move on BUT WHY ARE THEY SO EVIL? It's all about business darling, a man gotta eat and feed his familia. these market makers usually work on behalf of large institutions, and they are brokerage houses that provide trading services for investors in an effort to keep financial markets liquid. but they can also trade individually and make some profit on their own, this is where they manipulate you with fake breakouts and deviations and upthrust and springs and blah blah blah. without market makers trading won't be fun ;) thanks for baring my none stop nonsense writing, although I put a lot of hours behind my research so I don't falsely deliver the wrong information! so leaving a like and comment will cheer me up a lot, and although I don't have A LOT of money to be a market maker, I have A LOT of free time to create content such as this. (follow me :D) the next article will be about the taker buy-sell ratio !!!!!!!!!
BITSTAMP:BTCUSDEducation
by CryptoSep
9
June Week 2: EURGBP Long-term trend signal!Hi friends, I hope y'all had a fantastic weekend ;) Today, we have possible long-term bullish rally on this baby. I kind of doubt the trade but looking at how the correlating pairs that have GBP as a base currency behaved (by bearish dropping in the previous weeks) instilled faith in planning to take this trade with you guys. Before we do that, lets take a look at how the bulls and bears might behave in triggering and dis-confirming this trade. Bulls: -If the price bullish breaks and retests the Weekly Neckline 2/ 4th Weekly Key Lvl and 200 m.a (that's visible on my MT4 chart), that will trigger our trade signal that I call a Double Bottom A-E.2 signal, and the price will rally for the patterns L1, L2, L3 together for the short- term m.a's trend that will probably end on the last take profit point. Bears: -If the price bullish bounces off the Weekly Neckline 2/4th Weekly Key Lvl and 200 m.a with a bearish reversal candle pattern close, before or after taking the trading, that will tell us that the price isn't ready to rally to the last take profit point, and instead it will signal a drop to our stop loss key level. That's it for today. I hope you found value in this. If you have a different perspective, feel free to share it in the comments section, I'd love to know your thoughts on this pair! Stay Blessed, Doji-2k1
Long
by Doji-2k1
Why Do Pullbacks / Retracements Happen?When price moves from A to B, it rarely moves in a straight line. To get from A to B, price moves in that direction, retraces a little, then moves in that direction again. Why does that happen ? 1. Natural supply / demand dynamics The further price stretches up the less buyers join into the move. After some time whoever wants to buy already has bought. The others which have not yet will look for a retracement to buy again or to even short the move.Sellers will inevitably start testing the move. To see its strength at a point where they feel buying is at its weakest. As the sellers join the fight, buyers will see the upward momentum drop. Some will begin to sell out pushing momentum further down. The market makers who are moving the market the most will also reduce their buying pressure so they can save their capital to support the market after the retracement In order to ensure that there will be a higher swing low. 2. Manipulation by market makers. "Saving their capital" sometimes generates whole trends, rather than just a small pullback. Long uptrends for long periods of times will eventually finally hit consistent supply above which MM will not be able to push further. At this point the big players will start dumping a large amount of their supply the market goes into a steep decline covering almost the entire distance of the uptrend before the big player starts to scoop up all the inventory at a low price and repeat the upside move again. 3. Shaking out weak hands In order for a market to push higher. It needs to shake out the weak hands by engineering pullbacks. Weak hands will provide the necessary liquidity for the market maker to push the price higher. 4. Stops hunting. Market makers know perfectly well there will be traders moving up their stops up with the market. They will hunt them down. Sophisticated algos and trading programs will be used for this which further adds to the supply that causes retracements to occur. If you enjoyed this information make sure to live a like! Let me know in the comments what you think about it!
BITSTAMP:BTCUSD
by Toni_G21
Learning This Pattern Will Change Your Trading Forever.I trade from a strictly fundamental standpoint. The reason that 95% of traders are failing is because they are simply looking at a chart. The catalysts behind the movements of the chart and the why behind what's going happening on the charts is the news. Technical Analysis can only be applied properly once you have an objective, data based bias on the market. I call this pattern the market maker news pattern. Depending on whether or not it is a bullish or bearish day, this pattern can be found all over the charts on any given week. It happens on every chart. When you understand the why behind this pattern and can recognize it while it is happening, you will be able to catch massive moves in the market that happen very quickly. I hope this helps you grab a billion points and pips! Blessings to you and your trading!
FX:NAS100
by jefferytheartist
3
ALGOUSDT - INTRADAY TRADEToday we are looking at Algo because we noticed that while the majority of the Cryptocurrency market is down for the day, Algo is currently showing a >10% gain. Time Frame In this example, we are using the 4-Hour chart because we noticed a High Volume candle being triggered. Strategy Tactical Analysis - The evolution of the Traders Reality Hybrid strategy which stemmed from Steve Mauro's Market Maker Method and Trader at Home's PVSRA (Price Volume Support Resistance Analysis) systems. Trade Idea This is a very basic trade setup. Price is at the high's and is approaching the 200 EMA on the 4-Hour chart which is the equivalent of the 800 EMA on the 1-Hour. Typically price will react to the 800 EMA and tends to revert back towards the mean of the 50EMA. The daily V-Wap is currently sitting right around the 50 EMA providing more confluence for this trade idea as the price also usually will return to the Daily VWap which is where the institutional traders will find the liquidity to fill their positions. Additionally using the Trader Dynamic Index indicator in the oscillator section at the bottom of the chart we can see the price line has crossed the Market Base Line heading up however, we are seeing bearish divergence, Vwap Mac-D, and momentum all declining. Indicators Used: The Tactical Analysis 3-Indicator Suite - Tactical Analysis Part 1 - TVAR (Tactical Volume Analysis Recovery) - Tactical Analysis Part 2 - Levels - Tactical Analysis Part 3 - Oscillators
Short
by DisDev
APEUSDT - INTRADAY TRADEThe best risk to reward trade set-ups are usually found when you trade with the trend. To identify these ideal set-ups you plan your trade by starting with a high time frame and working down to an executional one. Time Frame In this example, we are looking at 4-time frames for APEUSDT. The 15-Min, 1-Hour, 4-Hour, and Daily.

 Strategy
 For this trade set-up, we are simply going to look at recovery zones and key levels to determine what we think the price is going to do over the next few hours.

We are using PVSRA candles which will be colored differently based on increased volume over the running average. The recovery zones are shaded to the right and are dynamically adjusted to show which portion of the High Volume candles have not yet been recovered, or where the price has not yet been retraced to.

 Trade Idea
 Starting with the Daily chart we can see that the trend is down and there are no recovery zones. The 4-hour chart has a high recovery point of $15.79, the 1-hour is $17.44 and the 15min is $15.99.

Price is currently at the daily and weekly low with the average daily range low very close. 



Indicators Used: DisDev - 
Level by Level DisDev - 
Market Maker - High Volume Recovery
Long
by DisDev
4
How to study indicators?Hello everyone Today I want to talk about indicators. Every trader has used indicators at least once in his trading, but not everyone knows how they work and why they should be used at all. The best way to understand something is to look for answers to questions yourself. Below I will give you some questions that you will have to answer in order to understand the operation of the indicator. Problem Most beginners start their way of studying indicators with books or articles on the Internet, where it is told: buy here when this line crosses this one, when the indicator enters this zone, and so on. With such a study, the trader does not understand how the indicator actually works, which indicators are similar to each other and why the indicator gives these signals. By answering these and other questions, the trader will be able to understand for himself whether he needs this indicator. Our task is as follows: 1) find out how the indicator is calculated; 2) understand how this indicator reacts to changes in parameters; 3) to understand what all this means in the context of market data. Find answers to the questions If you really want to get into the essence of the work of this or that indicator, do the following: 1. To begin with, you can start by studying the history of this indicator. It is best to look for the original source to understand what the creator of the indicator put into this tool. Any information will be useful for understanding the tasks that were set before the indicator at the time. 2. How can the indicator help us or why is it more useful for us to use the indicator than just looking at the chart? 3. Which indicators are similar to this one? Of course, it will not be possible to study all the indicators, but it is not necessary. It is enough to observe and understand where the indicators give the same signals. Thus, we will remove unnecessary repetition of signals on the chart. 4. What exactly is taken into account when the indicator is working? For this work, you need to be able to calculate or program at least in general terms. You can use third-party special programs. The main goal is to understand the details of the indicator calculation. 5. Change the data tracked by the indicator to see how it reacts to controlled price changes. Examples are: a market in flat, where a trend begins to emerge, and then a second return to flat occurs; a game on trend strength; a flat with one subsequent large price jump; "ladder" markets; stable long-term trends and their reversals; fluctuations (for example, sinusoidal) with different periods. 6. Take the knowledge you have gained and look at the indicator on the price charts. Notice how it reacts to price spikes. Analyze this stage of information collection. Your goal is to see how this indicator works on a large amount of data, and not to dig deep. 7. Now find out how you can test what you see in paragraph 6. Is it possible to test this indicator manually, or will a software algorithm be required to test it. 8. Having received all the data and understood the work of the indicator, you should understand whether this indicator is needed in your strategy? It will be difficult to answer all the questions, but the benefits will be tangible. You may spend several days or weeks searching for answers, on the other hand, you will learn something that most traders do not know. You will be able to really understand the signals of the indicators and be able to use the right indicator at the right time – which most do not know at all. If you do not learn how to understand and use trading tools correctly, you simply will not be able to trade in a plus. Good luck! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
6