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Originally Posted by Darkstar Good. Now what is the implication? |
The implication is that it takes a certain amount of buying power to move the market in a given direction, but less to move it in the opposite direction after the fact. Exiting the position would consume the same amount of liquidity in the opposite direction, but the opposite direction's liquidity is now thin. Therefore the market mover needs those red techie orders which will be consuming liquidity in the market's direction. But I feel that this explanation is right back where we started, though with the added concept of the liquidity distribution.
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Originally Posted by Darkstar BTW... did you notice the shift of latent demand to pending? |
I did, but I can't say I understand what it is. I'm aware of what latent demand is but I can't see it being that due to the linear distribution - you can't possibly know its distribution, can you?