Trendline
Last updated
Last updated
Trend lines are often used by retail traders as a support line or, as in this case, resistance. When price will form lower lows and highs, a test of the trend line will be used to open a short positions by a large number of traders
During such periods, the price often accumulates or reaccumulates. The income of less informed money into a particular area or level provides liquidity for the Market Maker. A rally begins, and liquidity at buying will move the price in an upward direction, providing profits for the big player. Retail traders will remain in a losing position.
Often the removal of trend liquidity will be an impulsive move.
When the price will form higher highs and lows, the trend line test will be used by more traders to open a long position.
During such periods, the price is often allocated or redistributed. The income of less informed money into a certain area or level provides liquidity for the Market Maker. The markdown will begin and the liquidity to sell will move the price in a downward direction, providing profits for the big player. Retail traders will remain in a losing position.
Often the removal of trend liquidity will be an impulsive move.
