A major player is interested in hiding his actions. However, it also tends to repeat itself. It should be understood that when the amount entered and withdrawn to the market is measured in hundreds of millions of dollars, this can only be done for a long time by entering amounts periodically. Our task is to find on the graph the input of similar amounts at the same time intervals. The time intervals can be:
– once an hour;
– once a day;
– on certain dates of the month;
– on certain days of the week.
It is clear that such input does not last indefinitely, but only at the time of the position set by a major player.
From our point of view, the best disguise is to buy in a falling market, then it looks like a normal price deceleration near the level, selling at a rapidly rising price, which is again masked by resistance of a certain level. Actually, this is where the levels arise, because a large player can use a regular limit bid placed at the right price, usually round.
Of course, such applications are immediately detected and thousands of traders begin to attack it.
The modern way to set a position is to use software algorithms that create a certain price noise for a set position, but eventually gain a position at the right price in the right volume. It is more difficult to detect such applications, it is necessary to analyze the glass in search of identical volumes appearing here and there. Why follow a major player at all? The way the market works is that it always moves from one major bid to another as if by magic. Therefore, when you find such applications, you use them as bait for price movement. It is often possible to see how a large bid is placed in a glass to pull up the price, for example, for 50,000 lots, and when the price approaches it, the bid is immediately withdrawn. Most likely, these are the actions of a market maker moving the market in the direction needed by a large buyer or seller.