Hey guys!
We need to understand how the big players (the exchanges with future markets) make their money to be able to accurately anticipate how they're willing to move the market. It's not that complicated actually!
They just have to know whether during an accumulation phase the majority of the positions set up by retailers are shorts or longs.
If they're shorts, the exchange makes the most profit by liquidating shorts, meaning the market has to move upwards.
If they're longs, the exchange makes the most profit by liquidating longs, meaning the market has to move downwards.
Simple as that!
Now as the indicator shows, the majority of the positions were SHORTs during the last accumulation, but currently it's LONGs.
The previous accumulation was followed by a move upwards, but the next one is expected to be downwards.
I'm not done yet!
Stochastic and RSI are also looking bearish on 1W time frame.
As you can see in the image below, Stochastic has been in the "oversold" zone since mid-April and now it's pointing down. RSI (the thick black line) is also pointing down, calling for a drop ahead.
I have to emphasize that this is a mid-term view, not a short-term one. The price will certainly experience multiple micro-fluctuations before the accumulation is over.
We need to understand how the big players (the exchanges with future markets) make their money to be able to accurately anticipate how they're willing to move the market. It's not that complicated actually!
They just have to know whether during an accumulation phase the majority of the positions set up by retailers are shorts or longs.
If they're shorts, the exchange makes the most profit by liquidating shorts, meaning the market has to move upwards.
If they're longs, the exchange makes the most profit by liquidating longs, meaning the market has to move downwards.
Simple as that!
Now as the indicator shows, the majority of the positions were SHORTs during the last accumulation, but currently it's LONGs.
The previous accumulation was followed by a move upwards, but the next one is expected to be downwards.
I'm not done yet!
Stochastic and RSI are also looking bearish on 1W time frame.
As you can see in the image below, Stochastic has been in the "oversold" zone since mid-April and now it's pointing down. RSI (the thick black line) is also pointing down, calling for a drop ahead.
I have to emphasize that this is a mid-term view, not a short-term one. The price will certainly experience multiple micro-fluctuations before the accumulation is over.
Trade active:
Admit it, you've been warned way before other traders!