Hello, all. New to trading securities using momentum/scalp strategy (at this point) with CMEG broker on sterling platform. Basic question....
What causes a significant price action change within an overall trend? Example- stock xyz has been steadily trending up from $4.00- $5.50 over the course of 10-20 minutes or longer. All of a sudden the ask drops to $2.75 stopping out many that have taken positions in the $3-$4 range. Is it genuinely a momentary supply/demand mismatch causing this. Is it market makers stop-hunting? Is it something the broker is doing?
I accept and appreciate that better entries And more due diligence is a big part of the solution, but after trading a few months ultimately losing, I am beginning to question the actual mechanism behind the price action.
I appreciate your time and responses.
What causes a significant price action change within an overall trend? Example- stock xyz has been steadily trending up from $4.00- $5.50 over the course of 10-20 minutes or longer. All of a sudden the ask drops to $2.75 stopping out many that have taken positions in the $3-$4 range. Is it genuinely a momentary supply/demand mismatch causing this. Is it market makers stop-hunting? Is it something the broker is doing?
I accept and appreciate that better entries And more due diligence is a big part of the solution, but after trading a few months ultimately losing, I am beginning to question the actual mechanism behind the price action.
I appreciate your time and responses.
