I'm a new trader and here is an out of the box thought: wouldn't most retail traders selling and going short at 2490-2500 just create liquidity for the big people ? could it be that there is a missile ready and waiting to be launched towards Iran or Israel and push the price higher ? (for the exact same purpose as the first Idea) I would like to hear you guys' opinion on these.
The blue line is US the retail crowd - most often WRONG and don't make a dent
The GREEN line are the big players - they follow the trend
The RED line are the commercials known as the smart money - they are nearly always net SHORT as they provide the liquidity to the green line players - which you can see on a like for like opposite movement of the lines - The RED players offload Inventory to the GREEN players most of the time
If you read the RED line correctly you can pre-empt turns on WEEKLY moves, Notice that whenever the RED line heads to the 0 line the price goes DOWN, then when the commercials start loading up and increasing their net short positions the market goes UP
Another example of where you can use an INDICATOR to predict or pre-empt things
{quote} I neither give trade calls, nor take trade calls. Just willing to discuss trade setups, which i might not perceived. Trade managment is on your own. Thats why you never take signals from any one.
