newschool wrote:I believe the goal of the MM is always the same, they want the price to move them way, but to be alone in the trade.
IE: They are long and price goes up , and now everybody wants to buy from them. By being the seller at a higher price, they have a guaranteed profit. But the buyers don't.
Thus why the MMs are always looking to grab the SLs or make false breakouts/reversal to trap others. They want to be alone in profit.
IMO.
yeah i agree pretty much with that
i am not sure there is a MM in forex--- such as there is in say AAPL---- but pretty much the same thing in a way
you have buyers and sellers, s/r (including extremes)
you have the guys that move the markets--- the pros
you have everyone else
price comes into support--- the pros start buying into support as everyone else is shorting into it ( bec they follow the heard). the market moves up into resistance and the pros sell their longs and start to get short--- as everyone else is buying( bec they follow the heard)
why?
who the hell knows---- lol
it is human nature to follow others
so when everyone is buying everyone else starts buying bec they fear they will miss the move so they end up buying into resistance
when you are standing at a cross walk and the sign says do not walk. All it takes is one guy to look both ways and see there are no cars coming. He starts to cross the road, and then everyone else will start to follow him without even looking. When standing at the cross walk and the sign turns to walk, as soon as the first person makes the move then other follow him, also without looking to check and see if the walk sign has changed.
people buy when other people buy, and they sell when other people sell.
i am not saying you just fade every move