Question for Intraday ES Traders

[clearinghouse]

Quote from braincell:

I'm developing my own bot for a while and I can tell you, I see those things happen mostly when it's hard to tell if a trend is being broken out or confirmed. Sometimes my own system gets confused around those points. It's primarily driven by computer analysis. It's quite simple really: there is a small difference in how each of the bots operate or rather how they detect and identify trends (support/resistance). That small difference decides on what the tipping point is at periods of uncertainty (price cannot be figured out what it's doing quite so easily). Then, it's a battle of the bots more than anything else. However keep this in mind, most of those are created by drawing out Trend Channels and trend lines that a human would draw, so sometimes, human interaction by discretionary traders contributes also. Some firms use semi-automation where the signals are plotted and explained on screen, and then traders filter them out a bit. So it's a bit of both, humans and computers and everything in between battling it out.

Well, there's two scenarios right: 1) It's a point of confusion where there's a battle, or 2) It's deliberate gaming to trick market players into reacting a certain way. The reason I lean towards 2 is because lots of little guys would just be reacting to each other, little cockroaches swarming one way over a longer period of time, whereas a deliberate action is a focused, sharp, deliberate action taken to cause the market to act one way or the other.

#1 would be like a check-raise followed by a re-raise in poker
#2 is more like a large call, large call, large raise

Or am I wrong?

 

[GordonTheGekko]

Quote from braincell:

Small bursts of activity like this happen fo

Why would you be concerned about such moves? They're just part of the markets, and you need to observe them like you would an animal in the wild.

Great analogy!