The contrary market

Y

yank_my doodleitsadandy

I think that most traders don't realize that the market is contrary. When the majority of traders think the market will go one way it will invaribly go the other. That's how the mm's maximize their profits. It's why, considering the geopolitical situation, the Ukraine war, the virus, China lockdown and the FED threat of hikes, we will have days like yesterday and today. Personally, I watch the pc ratios for individual positions and for the market in general.
 
We don't bother about those contrarian things.
We don't bother trying to reason things out or rationalize what is happening.


Just focus on the charts and that should suffice.
The chart is always correct even if there are manipulators.
 
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What you say is contrary is nothing more than a trend reversal. Trend reversals happen much more often than people think. Stockcharts do not lie, people do.
 
If the majority of traders are long then the rate at which new longs enter the market will slow. When the trend stops, profit taking starts, followed by shorts and we have a down trend. Market makers do not care about direction. It's all about the spread.
 
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