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Stable and Quiet Market state

Here is the Stable and Quiet market state. We can have a general consideration of this market state and how it evolves.

I think that this is the simplest classification of the market states (all the Elliott wave theory is an elaborate classification of market states, the Neely extension of the Elliott wave is the most elaborate form of classification I know).

The idea here is that and what is new is the use of market states analysis together with the Open orders analysis. We are interested where the open orders are situated, and they are situated very often at key technical levels and fibonacci zones. And that is the market reality, because the open orders are part of the market, even if the price chart is not there yet. 

The specific configuration of open orders arround the market states can give valuable information about the continuation of the market state or its transformation, including information about how to manage the risk. 




  • JohnLast 3829 days ago

    You can check this example how the open orders by uninformed traders may shape the future market state.

    By hypothesis the open orders at Oanda are a significant sample of the attitude of the uninformed traders globally.

    Even if the uninformed traders retail traders are no more than 10 % of the Forex market (this information need to be updated), the accumulation of orders they do make a huge accumulation of money at the same price levels and they are activated simultaniously all over the word. And as the market makers need to execute them they in turn propagate the wave of those price chocs depending on their internal inventory, risk management politics and their specific need for hedging.