A smart man said "place your buy positions where you would place your Stoplosses".
Could be interpreted in "If there are (technical) RISKS... then it's almost a guarantee the worst case scenario will materialize". Because of liquidity.
I thought about this and could differentiate these situations as:
--(Downtrend) crowd influenced. (Say: deathcross.. with risks to break the Higher Low).
--(Uptrend) Euphoric, extended trend. With strong longterm fundamentals and positive future cycle. It would benefit smart money to break this trend and buy everyones shares for cheaper -> when markets are supposed to be slow and they have got all the time in the world.
--(Uptrend) Institutional FOMO. Game theory, 70%+ managers underperform the index, on strong trend every dip is the last price you get.
//Stop Loss Hunt
//Institutional Fomo.
Could be interpreted in "If there are (technical) RISKS... then it's almost a guarantee the worst case scenario will materialize". Because of liquidity.
I thought about this and could differentiate these situations as:
--(Downtrend) crowd influenced. (Say: deathcross.. with risks to break the Higher Low).
--(Uptrend) Euphoric, extended trend. With strong longterm fundamentals and positive future cycle. It would benefit smart money to break this trend and buy everyones shares for cheaper -> when markets are supposed to be slow and they have got all the time in the world.
--(Uptrend) Institutional FOMO. Game theory, 70%+ managers underperform the index, on strong trend every dip is the last price you get.
//Stop Loss Hunt
//Institutional Fomo.
Not
this is a bad example for SL hunt because it's a downtrend. And might as well just be crowd dominant trade or "trend"?
Not
In 2020. Oil was not going nowhere longterm lol; If you are the smart money, it made sense to attack this trend. And buy every share possible on the way down?
Not
If you have a very long horizon, it made sense to "ruin" this trend or attack the weakness. Buy cheaper.
This would be SL hunt when uptrend.
Not
If something could happen to price.. then it will most likely happen. Because of SL hunting. Place your positions where you would place SL.Not
and example for crowd and institution fomo? aka "price never being cheaper".
Not
If something were to fly... then it's going to fall once before flying.
Like there was more liquidity to suppress the BTC trend.
Where is the most liquidity here? it's still down. once. before big reversal?
Not
another way is to look positionally. You would hold big % of portfolio positions during strong trends. Not downtrends.
it explains poor price action.
because Price is SUPPLY/DEMAND SURPLUSS.
Downtrend ---> LOW DEMAND. not high.
Not
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Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, alım satım veya diğer türden tavsiye veya öneriler anlamına gelmez ve teşkil etmez. Kullanım Koşulları bölümünde daha fazlasını okuyun.
İlgili yayınlar
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, alım satım veya diğer türden tavsiye veya öneriler anlamına gelmez ve teşkil etmez. Kullanım Koşulları bölümünde daha fazlasını okuyun.