Kosta Ouzas explains how market makers trap leveraged traders in repeating cycles: shorts get stopped out when prices rise, longs get reversed when they fall. This liquidity extraction happens at every timeframe, a rinse-and-repeat pattern that punishes lower-timeframe traders.
They'll go bearish, and they'll start placing short positions because the price is down, which gives their makers all they need to take them out, because they're going to go high with leverage, hot with leverage. The price is going to go back up. And then, guess what? All the people that were bearish are now bullish because the price has gone back up, and they're going to start going long, and then price is going to go against them again. It rinse and repeat. Happens all day, all day. 24, 7 on every time scale. And that's how they make money. And I think that especially on the, on the, on the lower time frame, every, every move is like a roll of that roulette table. And the, and the, and the, the dealers just, just taking in all the chips.
