In this COMPLETE THREAD I will explain “Trading Liquidity”
1. Who moves $BTC
2. What are Market Makers?
3. High frequency bots
4. “Liquidity” explained in chart
5. How trading bots identify Liquidity
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1. Who moves $BTC
2. What are Market Makers?
3. High frequency bots
4. “Liquidity” explained in chart
5. How trading bots identify Liquidity
🧵(1/13)
1. Who moves $BTC
Currently the #Bitcoin has a Marketcap of 1.3 trillion Dollars.
This is a significant amount if we compare it with the capitalization of Gold, Silver or public companies.
The majority of traders doesn't speculate on the price of Bitcoin, the majority holds
Currently the #Bitcoin has a Marketcap of 1.3 trillion Dollars.
This is a significant amount if we compare it with the capitalization of Gold, Silver or public companies.
The majority of traders doesn't speculate on the price of Bitcoin, the majority holds
1.1 Who moves $BTC
Then you will wonder...
Who moves the price of #Bitcoin?
Who is buying and selling 24 hours a day? The 365 days of the year?
Are there really people placing buy and sell orders at all price levels?
Then you will wonder...
Who moves the price of #Bitcoin?
Who is buying and selling 24 hours a day? The 365 days of the year?
Are there really people placing buy and sell orders at all price levels?
2. What are Market Makers?
They are companies in charge of providing liquidity in the order books of exchanges.
Market Makers are whales within the market, large players.
With sufficient liquidity to assure the Exchange that there will be Supply and Demand at all prices
They are companies in charge of providing liquidity in the order books of exchanges.
Market Makers are whales within the market, large players.
With sufficient liquidity to assure the Exchange that there will be Supply and Demand at all prices
2.1 What are MM?
This is necessary to reduce the spread and provide better service to retail users.
But MM are in charge of placing limit orders in the market, at a fixed price.
They are the orders you see in the Order Books
This is necessary to reduce the spread and provide better service to retail users.
But MM are in charge of placing limit orders in the market, at a fixed price.
They are the orders you see in the Order Books
3. High frequency bots
Other big players who move the market are those who operate with high frequency robots.
They have the best resources at their disposal, the best mathematical algorithms, the highest execution speed, the best financial advisors, first-hand information...
Other big players who move the market are those who operate with high frequency robots.
They have the best resources at their disposal, the best mathematical algorithms, the highest execution speed, the best financial advisors, first-hand information...
3.1 High frequency bots
Their high-frequency bots are programmed to detect manipulation opportunities and make profits.
This occurs when there is not enough liquidity and there is no evidence that other bots can operate in the opposite direction.
Their high-frequency bots are programmed to detect manipulation opportunities and make profits.
This occurs when there is not enough liquidity and there is no evidence that other bots can operate in the opposite direction.
3.2 High frequency bots
The focus of reading these algorithms is to find sensitive areas of liquidity and monitor their competition (other bots).
How do you detect your competitors?
High frequency always leaves traces, they run a lot of volume at milli-second levels
The focus of reading these algorithms is to find sensitive areas of liquidity and monitor their competition (other bots).
How do you detect your competitors?
High frequency always leaves traces, they run a lot of volume at milli-second levels
4. “Liquidity” in a chart
High-frequency bots look for, and they are concentrated liquidity areas.
The little liquidity they detect is necessary to be able to execute many market orders and move the price.
First in this chart they liquidate LONG positions, then SHORT.
High-frequency bots look for, and they are concentrated liquidity areas.
The little liquidity they detect is necessary to be able to execute many market orders and move the price.
First in this chart they liquidate LONG positions, then SHORT.
4.1 “Liquidity” in a chart
That is why they need a final area of great liquidity to be able to close their high volume positions.
We call these areas the Liquidation Pool.
Within a heat map, the algorithm detects where the liquidation and SL should be located.
That is why they need a final area of great liquidity to be able to close their high volume positions.
We call these areas the Liquidation Pool.
Within a heat map, the algorithm detects where the liquidation and SL should be located.
5. Trading bots identifying Liquidity
This areas that are attractive for high-frequency bots, to be able to take advantage of all that liquidity.
This is why the price always forced to make novice market traders lose.
That’s why the market flushes you in one wick.
This areas that are attractive for high-frequency bots, to be able to take advantage of all that liquidity.
This is why the price always forced to make novice market traders lose.
That’s why the market flushes you in one wick.
5.1 Trading bots identifying liquidity
In conclusion, the Strong Hands high frequency bots are the ones that move the price 80% of the time.
In smaller time frames, the price is always trying to liquidate.
In conclusion, the Strong Hands high frequency bots are the ones that move the price 80% of the time.
In smaller time frames, the price is always trying to liquidate.
I hope this THREAD has helped you understand what “Liquidity” means.
For this information and trading bots, I personally use @tradingdiff
This is NOT a promotion. Is a on-chain tool you see me use in Discord daily.
Optimize your trading. Learn about liquidity.
For this information and trading bots, I personally use @tradingdiff
This is NOT a promotion. Is a on-chain tool you see me use in Discord daily.
Optimize your trading. Learn about liquidity.
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