Market Dictation
The markets are to become complicated beyond what is calculable.
Free money only exists until capital flows become equalized, this will happen when people realize the obvious profitable positions they could be holding. When people start piling to these positions, the positions will then become weak, because it will open up 'Stoploss hunting' do to discreptencies between what is likley probable to happen and what 'is' happening.
Example: Gbp/Chf is moving up.
Gbp is technically the profitable currency held long, do to interest rates.
At the same time though, major players know where the relevent S/L will be placed accociated with any positions held do to interest rates.
Major players watching volume and cross referencing with 'Interest rate probable direction' are able to be 'Side lined' until markets 'Stop out' positions, lose momentum, then enter positions in probable direction after market participants have exausted position volume.
Example: Gbp/Chf
In an upward tend, major players could see where Stops are placed. See stops hit, then enter long after all Majority of original buys were covered.
(meaning) Watching volume and positioning, one could see when there is no more sellers cover there original buys.
..So one would know there is no more sellers likely because all the original buys have been sold, hence the market can only rise.
All responses, comments, critisism welcome
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