Instrument : DAX CFD
Date : 12.07.2021 16h35 (UTC+2)
As I know a lot of you enjoyed my previous example to read the price like a market maker, here is another one from today.
When you read the whole story behind the charts using price manipulation, you can guess the next move with a high probability.
Let me explain a bit more my sentence in blue from the chart. Why is it obvious that a bullish move was coming?
- Buyers from london open have been stopped out quickly => usually when market makers want to move the price in one direction, they don’t want you to win money being in the right side.
- Afert that, they took their time to induce some sellers and eventually stop the late buyers => remember that the big players need liquidity from sellers to buy from someone
- the double bottom around 12h10 doesn’t break previous low which could indicate a interesting buying zone from big players
- And finally, when you see that the price breaks the micro down trend line trapping sellers, this is where you have your final confirmation that the price could go up.
I hope you will learn something.