THIS TRADE ALREADY HAS BEEN TAKEN HERE IS THE PSYCHOLOGICAL BEHIND:
“Resistance” just works because retail think it does exist, so basically they place sell limits there, then price starts to react at the” resistance” and then they get confident and add more positions and other retail traders, who have may wait for confluence that the “resistance” works enter shorts, then MM push it above trigger SL and people seeing the major “resistance” getting broken and starting to buy, NOW the market Makers has enough liquidity to fulfil their huge trades on the exact other side retail is. The market makers will always have more money than the retail traders, however during specific times of the day according to beliefs and chartism patterns there will be influences that cause imbalances in the order book, the market maker must re-balance or liquidate these posisitons, this is what will cause these large fluccuations . It is just a way to balance the market after generating liquidity, BUT remember on every timeframe the orderbook is different , the perspective changes.. so depending on the timeframe there may be an imbalance on one timeframe but not another.. , just try to look when the market is in consolidation , this means the books are being balanced, and soon ready to be manipulated
“Resistance” just works because retail think it does exist, so basically they place sell limits there, then price starts to react at the” resistance” and then they get confident and add more positions and other retail traders, who have may wait for confluence that the “resistance” works enter shorts, then MM push it above trigger SL and people seeing the major “resistance” getting broken and starting to buy, NOW the market Makers has enough liquidity to fulfil their huge trades on the exact other side retail is. The market makers will always have more money than the retail traders, however during specific times of the day according to beliefs and chartism patterns there will be influences that cause imbalances in the order book, the market maker must re-balance or liquidate these posisitons, this is what will cause these large fluccuations . It is just a way to balance the market after generating liquidity, BUT remember on every timeframe the orderbook is different , the perspective changes.. so depending on the timeframe there may be an imbalance on one timeframe but not another.. , just try to look when the market is in consolidation , this means the books are being balanced, and soon ready to be manipulated