Crude oil is a human

Algos programmed to trade? So there is instant reaction with large quantity to move the price.? Wondering....

Dear DSM, Zabeen2004

You are exactly correct. Senior Rocks......

Algo method and Accumulation is the only reason for full day liquidity and also for the sudden up or down move.

For exact clarification,

and to make it conform

We need to study about " PRICE LADDER"

PRICE LADDER is available for Zerodha Nest Trader as far as i know

Order has already been placed by market makers from current price to upper circuit price, and current price to lower circuit price.

in MT4, Nymex crude and INR is connected for the automatic order. Whenever the up and down happens, automatically MCX Value is arrived. and Automatic Order is triggerred.

If the sudden moves happens from 6000 to 6060, All the pending selling orders from 6060 to 6060 is executed. but all the buy orders are not executed due to lack of sellers in the exact buy price. So after the sudden 60 points up move, there will be more pending orders in the buy side which was not executed. Market makers will cancel the pending buy orders.

Like that,

If the sudden moves happens from 6000 to 5940, all the pending buy orders from 6000 to 5940 is executed. but all the sell orders are not executed due to lack of buyers in the exact sell price. So after the sudden 60 points down, there will be more pending orders in the sell side which was not executed. market makers will cancel the pending sell orders.


This is the basic concept behind the price movement of every commodity. But which strategy? which technology? How they accumulate? when they book profit? is used by market makers is the different concept. This needs to be learnt well through adequate source.

Anyway, market makers have the capacity to buy at the every price and sell at the every price. Because they have adequate capital in their trading account.

But normal traders are not having such capacity. So they wait after taking the position and wait for the market prices to move in their favour. So normal traders fail most of the time.

I have given the basic information which was understood by me in the market hours by watching the order book and price ladder. Dont mistake me if there is any misunderstandings.

Positional Trading is the Express Train. Intraday Trading is the passenger train. Which trading do you prefer? which trader you are?

Experience 25

Positional Trading is the Express Train. Intraday Trading is the passenger train. Which trading do you prefer? which trader you are?

Trading is a wonderful Journey. All people are willing to participate in this journey.

There are two types of people in this journey.

Common People= Middle Class People or Traders with small capital = They are always liking to travel in the passenger train. (Intraday Trading)

VIPs and Old Age people = High Net Worth Individuals or Traders who is engaged with another profession or business with no time to watch the market. They are always liking to travel in the Express train. (Positional Trading)

Advantages of the Passenger Train ( Intraday Trading)

1. Very Low Ticket Fare ( Very Low Capital is enough)

2. All people can catch the train at their place ( Anytime, you can enter in the market and exit from market when you reach your destination (target or stop loss)

Disadvantages of the Passenger Train ( Intraday Trading)

1. If the express train is coming on the track, This passenger train will be stopped in the station for giving the way to express train. ( If the positional trend is bullish or intraday trend is bearish, intraday traders will sell and positional traders will buy. atlast, positional traders will make money by taking the money of the intraday traders. So Intraday traders always give their money to positional traders )

2. Ticket fare is low but extra expenses are high. As passenger train is stopped in all the small stations, we will do more expenses in the small station to eat, drink, etc. so we will make expenses more than our ticket fare. this is the normal condition. ( Brokerages and Other Slippages are high comparing to our trading profit in intraday trading. I have seen more traders losing their capital intraday and giving the brokerage more than their capital as number of trading per day is high)

Advantages of the Express Train ( Positional Trading)

1. Train will be stopped in the important stations only. We can catch the train in the important stations only ( In Positional Trading, Whenever we see the major trend reversal point, at that time, we should enter the market or exit from market. All the prices is the correct price to enter or exit)

2. Number of Stations are very less to reach the destination ( Number of trading per month is very less to achieve our target)

3. No over Expenses in the station ( As number of trading is very less, brokerages and other slippages are very low )

4. Peaceful Journey ( Positional trading never gives the way for emotions, greed, fear, etc. This is purely a peaceful trading system to trade only trend to trend only )

Disadvantages of the Express Train ( Positional Trading )

1. High Ticket Fare ( High capital required to do positional trading)

2. Common People cannot prefer this ( As positional trading requires high capital, The common people with low capital cannot do positional trading )

3. Preparation is required to book the ticket. Before catching the express train, we should reserve the ticket, and get the allotment, after confirmation, we can travel in the express train ( In Positional trading, Backtesting of the strategy, Paper Trading is required to become a full time trader. After getting profit constantly from your strategy, you can do positional trading)

I am purely a positional Trader

Just for making the trading business as your interest, i have given with real journey examples... if there is any mistake in the concept, kindly ignore and excuse me..