in other words, the rich will always make money, and the poor can always lose.
I think everyone has known, that horizontal channels called flat. And although in many books we can read, that since the price is flat, so trader has nothing to do this time, while market hasn't come to a consensus.
IMHO flat is very important.☝🏻
[b]The horizontal channel (flat) is -
▪️ the fight between two major players (seller and buyer)
or
▪️ accumulation of the required volume at the price of interest
🧐What happens in flat?
“Consolidation” is often used trading word, just at the moments of flat. Literally, it means - strengthening something, uniting, rallying individuals, groups to intensify the struggle for common goals, the merger of two or more firms, companies.
Strengthening something is kind of like creating a support / resistance level.
It turns out, that it's the consolidations, that are very important for the trader, here the fate of the further movement is decided. The trader's need to understand a very little thing, namely, who will win.
In order to understand who will win, you need to figure out what's going on inside the flat?
There are two players on the market. One needs to collect a sell position and he always sell, the second needs to collect a buy position and he always buy. Noone open positions are closed.
At the bottom of the consolidation, the price is bought in hope, that it will go even higher. As soon as the price reaches the upper border, sellers become more active and start selling, thereby dropping the price lower.
🤓Moving on to the fun part. How long will the consolidation continue?
Precisely until the moment, when one of the players runs out of money. As soon as one of them runs out of money, once again approaching the border of consolidation, there will be no one to stop the movement from flat (consolidation) and further movement towards the winner! Than's all😀
I really hope, that my post was useful to you, if so, let me know by clicking like button! It's not difficult for you, but I'm pleased ♥ ️
Because Big Money are sharks that feed with bears and bulls, they can even devour whales. If you are smart you can be a pilot fish that lives among them and steals their food without being caught =)))))))))))))))
Hmongpress
⋅
Here are my stupid questions? If BIG money then Who's money is it? If Money is what drives the price then who is constantly buy and sell even during a market crash? Since the stock market has a market maker then who is the market maker in crypto? Aren't they the same mafia that rules the world as we know it? If supply and demand drive the price then the USA dollar would be the most valuable in the world with all those mega warehouses full of USA dollar stack sky-high in China and all around the world?
fr0xk
⋅
@Hmongpress, Anyone with sizable amount of capital to manuver markets can be a market maker. Higher timeframe needs bigger amount of capital and lower timeframes need lower amount. MMs are usually sovereign wealth funds in Forex. Ray Dalio is pretty much MM
UnknownUnicorn10828932
⋅
great idea thanks
thinkerdoertalker
⋅
It all makes sense now. Appreciate your thoughts.
ralphrahal
⋅
Looks promising, I got two short entries so far and the trend seem to still be heading up. Fingers crossed.