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Kosta Ouzas breaks down how traders use price moves to trigger liquidations and pull liquidity. He traces a manipulated rip to 124, within $500 of target, then the reversal once liquidity dried up.
Kosta Ouzas breaks down how traders use price moves to trigger liquidations and pull liquidity. He traces a manipulated rip to 124, within $500 of target, then the reversal once liquidity dried up.
These liquidations are like domino effect, right? Why did it get checked up right there? Well, there's a tremendous amount of offsetting by demand there. And you, if you are close opening positions that you don't have an offset for, then you would be short, opening short and you would have an imbalance, you'd have a problem. You don't want to send a market up where you have an imbalance of short positions. This doesn't make any sense. So obviously you have to send it up, bring it down. Then that brings this, it brings in more liquidity down here. This move up was very manipulated or we had this huge rip up. Everybody thought we were going to 200, but we weren't. We were just making us what we already were, putting 124 as our target. We hit that within $500 and then now they're coming back. For all the liquidity that was sucked into that move.
