You Can't See The Forest For The Trees

24 Dec 2025 · 0 min

Watch on YouTube

0:24

Short excerpt from a YouTube video by Kosta Ouzas discussing market microstructure: how large price displacements enter a phase of price discovery, and how the market's acceptance of a discovered price (measured by sustained trading/liquidity) determines whether a new price level holds or reverses. The speaker links the duration of acceptance to liquidity buildup and contrasts scenarios where a discovered price is rejected leading to a reversal.

If it does a very nasty displacement when it goes into a price discovery, right. We're imbalance and we're seeking new balance. If it the longer it can stay here, the longer the price gets accepted, which builds the liquidity. The market accepted the higher prices, which built the liquidity. If it was going to reverse into a bear, you would think it's going to take this discover price doesn't get accepted and it comes back down before you build this massive amount of.