Trading involves not only ordinary people like us, but also big players: banks, funds, institutional investors, so we call them - 🐋 whales
And believe me, their volume is not calculated in a thouthands, they work with billions. Just in case in 1 Billion 1000 million. So youll imagine the numbers!
As we know from the theory of market relations, in order to buy, you need someone to sell.
Do you think a major player will be able to immediately buy for 1 billion in one click? - Of course not!
There is simply no way anyone can sell such a large volume. Therefore, large players do not act like we “lets go to exchange, bought as much as needed,” they gain their position step by step, and this can take more than one week, or even half year!
A major players needs fuel, they needs someone to sell it.
Traders who trade technical analysis draw “patterns, triangles, downtrend lines, channels” and based on books from 1970 yes all this patterns looks logical....but reality different.
Everyone draw the same patterns! Thats why now Whales can manipulate the price + media!
Liquidity is a key!
On different timeframes! Always just zoom out and take a look where do you think main stop losses where is a main liquidity pool! The price moves from liquidity to liquidity. News just deliever the price faster.
After all, a major player will always be interested in zones where there is a large concentration of stop orders.
Structure
Allows us to see which next liquidity zone the major player will go to, where will he deliver the price? But its hard because we need work with different timeframes and try synchronyze it
Supply and demand
zones for recruiting or fixing a position by a major player. Zones that force the price to move along the structure until the next favorable liquidity.
We can just TRY follow the steps of big players! nobody know the next move, but our goal just try follow the steps and no need to reinvent the wheel
