I like that we are saying here all that we think if it at first look seems crazy and wrong things.
After discussion thereafter it could happen that it's just brilliant, what we thought at first crazy or wrong.
Don't know who to do that in Ninja
That's why hope Cunparis or somebody with programming experience can help us.
I also want now to plot as mentioned 1 minute volume on 5 minute price
and now also on 1 minute price 5 minute volume as I already did + 1 minute volume
I see now "strange things"
I see now, seems all, how it "inside"
Move market back...Look what happen on your chart where green line starts, what I meant, huge draw down right ? Why that gone back upwards?
I think you are 100% right about HVC, that why I also want to study that more and seems we are doing that here.
Yes, I think price and volume tells exactly what will be just because they acts as per laws the have to comply with.
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Spot on. Same thing happened today. In fact I thought your chart was for today when I read it and then I noticed jan 5.
Slight precision - no market makers in futures. Let's call them "smart money". When smart money wants to sell they need to sell into rising prices to avoid pushing the market. To do that they will buy. There is a saying "do a little buying in order to do some selling" something like that. And that's what they do. Once prices rise they can sell into it. Their selling will stop the advance (eventually) and that's when price will fall down. Falling prices attract more buyers and if there aren't enough they'll buy again to repeat the cycle. Once they've sold all they need to sell they'll give it a big push like pushing a car off a cliff. this occurs on multiple timeframes. The COT report confirms what the smart money is doing but it comes out with a week delay.
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(maybe im quoting Tom Williams a bit, so i really cant take credit for all of this)
Resistance areas are selling zones and even if the price has been coming up, when they meet this selling presure, the momentum to go up will start to fade as new buyers meet the sellers strenght, so price starts to stagnate and moves sideways.
Market makers know exactly where these areas are! If they are bullish, they've bought at lower prices and are wanting to take price further up, but to pass this zones, they have to meet some of the selling (and this means buy some of the excess supply at early low prices (since they estimate price to go further up, they dont want to sell so early) and this is bad for them.
Tom compares this to a car going at high speed on the highway, and having to slow down and stop to pay the Toll ticket, to be able to keep racing on. :car:
Resistnce zones are the Ticket toll gates.
The newbies that were buying this move, now see the price stopping to go up, and even going down due to the strengh of the sellers. Some of them are stopped out, which increases the supply pressure (since the only way to get out of a long position, is to go short).
Some of the buyers start to panic, and think that they've bought at what appears to them to have been a top. And start to think "Messed up! ..better cover!"
Market makers dont want this! cause if newbies cover, they are selling, and more selling means price going further down... BAD FOR BUSINESS
So the only way to surpass this, is to make a sudden very quick move TROUGH the resistance zone!
They enter the market and this creates momentum:
Some of the selling is met! so the down pressure stops, and more buying is started;
Some sellers are stopped out <=> more buying (like Tom says, is like throwing gasoline to the fire);
The newbie buyers stop panicking, since they start seeing a loss turn into a profit, so they hold! "Guess i was right after all...";
Two line traders awaiting for the breakout, also buy.
So this is all mixed together to move the prices further up where the Market makers wanted it to go, by just giving it a push!
I guess this covers it! Hope to make Cunparis proud of my analysis.. he's the volume keeper
What do you guys think?
Am i close?
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