Make a simple thing. Marked on a chart Hi Lo Close Open the previous days. Look untested prices. Mark where it five days earlier each day. Landmarks prices next few days. And then look at the same chart since these prices, you're set. And show picture to us.)))
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All right. I've been thinking. Since I went into philosophy.
A few reasons why you should look for large pro and go with them.
Reason number 1 they are BIG. They are long time in the market and know what the market is capable of. The market is a club which is good access to the deposit. Better than 10 thousand dollars at least. So, knowing what a market, they work so that you cut. This occurs in ordinary days, when the market is not news or other information.
Reason number 2, which is more important than all causes. They know the inside information. Forced to move the price of supply and demand imbalances. But these imbalances cause information. If you know the information that 90% would move the market towards the demand side, will you sell? Maybe so, but only if a) you must leave a great pose B) you still have other information that will move the market in the supply side. And if you do not have this situation, then you will buy. And the more information the more you buy.
So, the pros know the inside information. Knowing how to assess supply and demand, you're one step ahead. Knowing how to change the supply and demand, when will the information you are ahead in two steps. Beat in the head. These guys know the inside information long before you even know that there is this kind of information.
The other side of the coin, liquidity. They need you. Since you are their meat, which they filled in the cart. The more meat, the steeper. If a shark must buy 100 thousand contracts, but will spread at curent level, and if on the high of the day or the days low public will fill it without a spread. Guys, it will take the price higher or lower price, the current one. Or he'll take it where it will be more liquidity. The simple mathematics will tell you that it is better to buy large portions at certain prices, thus you reduce the spread of his position, getting a good average price, rather than buying the entire market in the Wild Spread position.
Where the greatest liquidity? At the most obvious of all levels. And the fact that you lose to a shark, not to say you're a bad trader, or a trade did not work. This just shows the difference between you. The shark never, never go to market without a guarantee of winning. She must have inside information, or she knows that information is not strong or there is no information, have deep pocket, knowing that the others sharks are doing . Where is a word about charts? Look at what the benefits. SHARK knows all about the market where it is working. You do not. So you need to go with it.
Just prove to yourselves that one of the greatest liquidity on the tops or low of the day. Look at how where moves tape. Look how big volumes are. So everywhere. Stocks, futures. Everywhere you look.
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Please see the attached chart.
Daily chart->Last bar= yesterday (20/06/2011)
Intraday chart->Last bar=today (21/06/2011)
What to do now?
--------------------------------------------------------------------------------------------------------------------- Today's observation
1.In a stock,I noted many trades going at ask with same size 345 from 2:14 to 2:50 (Time and sales window time).The 345 size trades were intervened by many other trades.
2.After that, the size changed to 346, and the same process continued till 3:15. Till now, price was constantly supported and never allowed to drop below previous low.
3.Then,quickly, the price rose from 1100 level to 1110 level. 346 continued.
4.Then big block traded with size 10000.
5. Then price dropped back.
1. The 345/346 sizes were portions of Large Iceberg orders?
2. Price rise up from 1100 to 1110 was intentional mark up?
3. Big blocks of 10000 were distributions?
I have recorded the entire video. Will I post it here?
Last edited by rocky9281; June 21st, 2011 at 10:26 AM.
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Now you can see what potential lies in the simple things. High and low of the day. The opening and closing. Pros can not know where the stops and your orders. This is prohibited by law))) But they know how you think they know what you're doing. Why? They were you.
With regard to insider information, it is generally a grade. It is not available either to me or you. But you all saw how high the day worked.
Inside, it's mostly about contracts for companies, statistics, decisions at government level.
We have a stream of orders. Now, with regards to important levels. Quite clear that we must look at the tape at these levels. If the market goes higher, the tape will behave on the days high one type , if the market does not go higher, the tape will behave differently.
Need basic knowledge of the theory of the auction market. Read somewhere. Look. A profile of the market well write about it.