Does anyone actually understand why stock price moves?

[mute9003]

so basically for price to go down there has to be more open sell orders basically stacking up to drive the price down .
and the purpose of the small retracements is to get bulls to get trapped to drive the price even lower?
and the bottom is basically when everyone who was stuck sold at a loss and now there is no selling pressure and buy orders start stacking up pushing the price back up?

 

[easymon1]

"If they can't knock the bottom out of it,
they'll try to knock the top out of it." Tom O'Brien

 

[ZedMan]

I do, but no one seems to like it. Buying and selling is not how it works, although retail and news sets direction and changes.

The algos from the big boys move the prices around. There is a multilayered system of 'tracks' that are created to follow.

When you see the price move such as it goes up and then down in extremes, there are points that the algos aim for and have to hit, or are attracted to.

I know the how, but the why is still a mystery. My guess relates to volume balancing.

 

[Leob]

https://blog.jigsawtrading.com/the-...education?mc_cid=d2fc71d418&mc_eid=d149390047

I believe it's a good material for intraday trade

 

[panzerman]

I know the how, but the why is still a mystery.

There is every reason under the sun as to the why. Trying to find cause and effect for every movement is surely a path to madness.

 

[piezoe]

Big volume doesn't necessarily mean big moves. Small volume doesn't necessarily mean small moves.

On average, however, what overnight posted about the relationship of volume to the spread is true.

 

[SunTrader]

so basically for price to go down there has to be more open sell orders basically stacking up to drive the price down .
and the purpose of the small retracements is to get bulls to get trapped to drive the price even lower?
and the bottom is basically when everyone who was stuck sold at a loss and now there is no selling pressure and buy orders start stacking up pushing the price back up?

No.

There has to be more sell orders hitting the tape. What shows in the DOM is only what traders want to show.

 

[Sprout]

so basically for price to go down there has to be more open sell orders basically stacking up to drive the price down .
and the purpose of the small retracements is to get bulls to get trapped to drive the price even lower?
and the bottom is basically when everyone who was stuck sold at a loss and now there is no selling pressure and buy orders start stacking up pushing the price back up?

Depends on context.
No increase in OI is generally the footprint of established longs/ short's covering.
One sees those orders on the book since most send orders with SL's and TP's.
Increasing volume with increasing OI is generally the footprint of Institutional interest initiating a repricing based on some fundamental or technical interpretation that becomes relevant.

RTH does not have the same characteristics as the Extended session due to the lack of liquidity.

The above is more for higher quality instruments that have plenty of liquidity and not so much for penny stocks and thin markets.

 

[mute9003]

Was i at least right about the small retracements on the way down?
How those happen?
Im basically trying to understand the dynamics of what makes the chart move...
Maybe someone can help me understand it better?\i just have questions lots of questions
And want to get answers from one source because internet and getting answers from multiple sources is a major fail. I get contradicting answers all the time

 

[wrbtrader]

Was i at least right about the small retracements on the way down?
How those happen?
Im basically trying to understand the dynamics of what makes the chart move...
Maybe someone can help me understand it better?\i just have questions lots of questions
And want to get answers from one source because internet and getting answers from multiple sources is a major fail. I get contradicting answers all the time

You may find your answers elsewhere such as in a forum that has people that actually trade those types of small-price stocks.

My point, I see a few in this thread that only trade forex or futures and replying (making suggestions) for your trading in small-price stocks.

Or you can just trade something that you actually understand what's going on instead of trading something you're very confused about.

There is every reason under the sun as to the why. Trying to find cause and effect for every movement is surely a path to madness.