It WAS funny.
Regarding myth 1, actually the minority controls. This fat cat comes to a point where he wants to get into the market. He builds a WALL with a limit order. The retail traders and other fat cats bounce off the wall leaving him standing there with his limit order not filled. Look at him still on the book and the market moving away from him. Funny.
regarding myth #2. adding and pulling limit orders before they are filled NEVER shows on the charts. Only T&S shows on charts. Adding and pulling are each much more active than the T&S levels of stocks or contracts going through the T&S.
What kind of orders never show on the book? Market orders. Market orders only show on charts and never show on the book. for MS's Myth #2, he leaves out that the market orders never show on the book, adding and pulling always show but he does not mention or know the three games that using these tools represent. Too bad for myth #2. very funny.
Myth # 3 deals with MS's belief that price forms on the book. We all know that trends do not end on bar ends. The price of the turn is well known before the turn. MS does not tell where on the book this shows. Lets say he is keeping a secret. good for MS and his secrets. BUT it is also true that turns are carved using charts because the turn shows BEFORE the turn and the expert, knowing this, uses what shows on the chart to later carve the turn.
All this expert uses is a list of pairs. The first of the pair occurs and he waits and looks for the second of the pair to carve the turn. When the second gets closer and closer he looks at the book to see the value of the exteme of the turn. The chart tells the expert when to look for a value on the book that is the extreme trun value. The value where unfilled limit orders outnumber filled limit orders.
This value is where the fat cats get hung out to dry. Why? Their orders are too far down in the FIFO to stand a chance to get filled. they are the unfilled orders and the market goes away leaving them standing there.
Everyone knows the ways of the book and its games. Everyone knows that there are more adds and pulls than there are trades that only show on the chart. Hey we all know that the minority controls the market.
Look at the daily range. Divide it into the annual fat cat earnings. Is the answer more or less than 1. That was a very funny post.
does everyone know the book only shows one thing: unfilled limit orders. So MS spends his time looking at unfilled market orders.
