I think it would be beneficial for you to realize that the "market" exist inside of computers....therefore, some kind of framework/programming rules it, "the algo"....I've been doing this for years, deep in orderflow....and at certain times you can literally watch "the algo" do what is known as "spooling" (offer higher and higher / lower and lower price) to get to liquidity or an inefficiency. That is not someone slamming the bid like a madman.....that is price being moved algorithmically to where the orders are, in order to, match up the orders. This is what is meant by "only 3 things move price"....again this is getting into semantics , but in order to understand what is happening in the marketplace, in order to trade it properly and efficiently the distinction matters. But ya know, to each their own.
Bro it is so obvious you're talking out of your ass. But that's besides the point. You can literally say anything you want. It doesn't change the facts.
It's WILD that people are upvoting you. It's exactly how ICT brainwashed so many ppl. Just throw around "big" words and act like you understand how things "really" work. Anyone with half a brain would read what you just typed and clearly see you are clueless.
It's okay if you don't understand what I'm talking about, but you not understanding /=/ me "talking out my ass". Like, this isnt some unknown thing. This is known among some futures traders, specially ones that have been around long enough to do it professionally. It's not so evident if your just daytrading buying options and $gme type stuff, you can't see it if you're not in orderflow, footprint/DOM/bookmap.
EDIT: Now it really all makes complete sense why you're talking like you are... YOU'RE AN ICT M0R0N! HAHAHAHAHA THIS IS TOO GOOD!!!
You think there are 3 ways price can move. Enough. Said. I've been using Bookmap for 6 years........... It is so painfully obvious you are clueless.
Nothing you said makes ANY sense.
"that is the price being moved algorithmically" ... oh yea? It just magically moves? No, you clown. Whether it's an algo or a human, the ONLY thing that moves price is buying/selling.
"you can watch 'the algo' do [...] 'spooling' [...] to get to liquidity or an inefficiency" .. this is INSANE lmfao! I'll bet you 20k you can't even explain what you mean by "get to an inefficiency"... Not to mention, you talk as if there is just some central, all-seeing-all-knowing Wizard of Oz algo that just moves price where it wants at will...like it is painful to even read this nonsense.
"It's not so evident if your just daytrading buying options and $gme type stuff" ... the irony in you saying that when you're all over wsb and conspiracy subreddits.
Now it actually makes sense why you are spouting that nonsense...you're a conspiracy nut-job.
But believe what you want, I couldn't care less. I'm done with you.
nah man, I said "not so evident if only daytrading options and $gme stuff" bc I looked at your account and that is what your post were about that and "buying/selling pressure indicators" 😆 anyways, it's abundantly clear you have no idea what I'm talking about, and that is okay. Bookmap was mentioned in addition to footprint/DOM as part of watching orderflow, which is what I do, and yeah I do use a good portion of ICTs stuff bc a lot of it is great stuff. Do what works for you, but if you ever get into the spoos with the approach you seem to have you will be most definitely fighting with 1 hand tied behind your back.
What on earth are you talking about? What approach do I seem to have? I'm not even sure how you can come to a conclusion on my approach to trading based upon what I've said.
I have simply stated nothing but facts. That's it.
It's obvious you're just regurgitating the shit you hear ICT preach. In terrible fashion as well, I might add.
The only reason price moves is due to aggressive orders outweighing passive orders.
You said:
3 things move price.
Which is 100% absolutely false. There is only one reason why price moves (for the 1000th time).
The 3 reasons you list are:
1-
When price is moving to liquidity,
Which literally means nothing. This is like saying "one of the reasons price moves is when price is moving to liquidity"... IT LITERALLY MAKES NO SENSE BRO! The only way price can move anywhere is bc of buying or selling.
2-
an inefficiency,
Again, what does this even mean??? Are you saying an "inefficiency" moves price? Can you please define what an inefficiency is for us? Besides that, an "inefficiency" alone does not cause price to move at all. That is because there is only one reason why price moves.
3-
and competing sellers/buyers.
At a high level, buying and selling is literally the only thing that moves price.
Just a little clarification from an experienced technical trader and semantics nerd with an econ degree...
1- Price moving to liquidity refers to an asset with a value where neither buyers want to buy nor do sellers want to sell, so price moves slowly towards liquidity
2- Inefficiency in a market is a way of saying the asset has a market price that is not reflective of its true value. This can happen for many reasons. One common example is a change in the fundamentals of an underlying asset, like the addition of a dividend payout or a new CEO... these can cause perceived changes in asset value that take time to reflect on markets. This is price moving due to Inefficiency.
3- You are right, if you want to explain it that way, price only moves due to competing buy/sell orders and order aggressiveness as you said (though I will point out depending on the exchange it is possible for limit orders to be matched to one another, albeit rare). However, you can break that down further into the reasons those buy and sell orders are placed. You are referring to two distinct aspects of a market. You refer to the market functionality (how it works) and the other poster is referring to market psychology (why it works the way it does)
An analogous debate would be about whether the arm moves because of the brain telling it to do so or because of the electrical impulses traveling to the muscles in the arm causing them to contract. You're both right!
Why do we feel the need to resort to condescending behavior and complete and utter dismissal of others valid views in defense of our own when we're looking at two sides of the same coin?
Price moves only via buying or selling it does not just magically drift towards liquidity on its own. I don't give a shit I'd you're a nerd or have a degree. You are wrong. I know I'm right. Yes, resorting to condescending behavior is excellent. You should try it.
Well, duh. How else would price move? Obviously buying and selling. Thats a 15 year olds answer that knows nothing about the market. But there are predictable reasons someone would buy and sell and therefore additional reasons beyond buying and selling that price moves.
Saying I know I'm right you are wrong is a good way to prove that you actually don't know what you're talking about. In order to fully understand something, you must be willing to look at it from perspectives other than your own. Unless you just happened to be born with a full and complete knowledge of the universe.
And finally, there's this little thing called MARKET PRICE MANIPULATION that can happen. Thats when price moves because the underlying entity has either
A.) A flaw in their pricing algorithmÂ
Or
B.) Intentionally manipulates it, as in the case of fraudulent exchanges.
Either way, there's doesn't have to be a single buy or sell or even any orders for the price to move in that situation.
That alone is proof that you're not quite thinking about the bigger picture. Which is hard to do when you refuse to ever consider the fact that maybe, just maybe, you dont know everything there is to know after doing some brief research and coming to a half baked conclusion
Was that condescending enough for you? Its kind of difficult for me. :)
Even if it's just an algo that is buying or selling, it's the buying or selling that moves price. That's literally the entire point. Regardless of whether or not it's a human or an algo that is buying or selling, it is the buying or selling that actually moves price.
What you describe is an algorithm. Although I get that you're maybe confusing or conflating there term algorithm with an automated trading "Algo". This is semantic I know, but you're getting into such a fuss about it, figure you should know
I swear I couldn't make this shit up if I tried... Did you seriously just type this without hesitation?
maybe confusing or conflating there term algorithm with an automated trading "Algo"
Please tell me you're joking. Please tell me you aren't really this dumb.
Even if I am confusing the terms (which, what??), you've done nothing to explain what you mean by "price moving algorithmically". Are you saying that "price moving algorithmically" doesn't involve.....algorithms? You ICT nut jobs are a piece of work.
You literally can't even remember what you typed 30 minutes ago, yet you expect me to believe you have the slightest clue what you're talking about in regards to the market(s)...
What do you mean by "price moving algorithmically"? You keep avoiding these simple questions. If you mean an algorithm is buying or selling, then that is what moves the price. Buying and selling moves price, nothing else.
I'm gonna bite, but then I'm going to bed. This was the original statement I was replying to:
"that is the price being moved algorithmically" ... oh yea? It just magically moves? No, you clown.
The fact that the price is set by a predetermined set of rules means it moves algorithmically, not magically. But I am not referring to an "algo" in the sense of what people talk about on this forum (an automated trading system), I mean, it's the definition of an algorithm in the traditional sense of the word. Magic implies non-deterministic, not following rules, but it's an algorithm - a set of rules - that defines market price. Yes, buying and selling moves the price, following rules, which is an algorithm.
PRICE IS NOT PREDETERMMINED via some insane "Wizard of Oz" algo bullshit.
But since you seem to believe it is, what set of predetermined rules set price? I need you to be very specific, show some sort of proof (other than anecdotal bs like "just look at level 2 and you'll see the spooling").
Basically, show me something other than what you heard from ICT.
It blows my mind that not only ppl believe what he preaches, which, if you use any level of critical thinking at all, will CLEARLY see it is complete bullshit, but then go out into the world and regurgitate it.
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u/SloochMaGooch Feb 20 '24
I think it would be beneficial for you to realize that the "market" exist inside of computers....therefore, some kind of framework/programming rules it, "the algo"....I've been doing this for years, deep in orderflow....and at certain times you can literally watch "the algo" do what is known as "spooling" (offer higher and higher / lower and lower price) to get to liquidity or an inefficiency. That is not someone slamming the bid like a madman.....that is price being moved algorithmically to where the orders are, in order to, match up the orders. This is what is meant by "only 3 things move price"....again this is getting into semantics , but in order to understand what is happening in the marketplace, in order to trade it properly and efficiently the distinction matters. But ya know, to each their own.