Deciphering market

Noobs ofcourse try to guess the price of a scrip by charts, i mean by applying technical analysis on them(fundamental analysis can help in investment but not in trading). but how do pros do it? on what factors do strategies depend when one becomes a pro in market and earns good amount consistently?

anyone who can say anything on this?

Technical analysis relies mainly on charts my friend. You look at patterns, market psychology, candles, volume analysis, trends and critical levels. That’s all what constitutes technical analysis.


As long as it works, it completely fine. Pros use stuff like game theory, signal processing, Markov’s chain and different stuff. I read that Renaissance uses it- the fund by Jim Simon.

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This is a very good question.

The reality is institutions don’t look at charts for trading. i.e atleast not for day trading.

Institutional scalpers use L2 or DOM for trading.
HFTs/Algos use L2/DOM i.e they use only Bid/ask data for front running. Also they don’t affect market movements like retail thinks. They do small amount transactions a thousand times. Ofcourse they also get caught on the wrong side some time.
Prop firms use ONLY L2/DOM.
Positional/Long terms institutional traders have a fundamental view(90%) and then confirm it by technical analysis(10%).

Remember its institution vs institutions , not institutions vs retail. But it doesn’t hurt for them to take your money.
Also institutions are the one who move markets by various tricks. That is the basis for all intraday movement, not silly lines on charts.

The whole intraday business depends on the strongest players taking money from the weakest players and they play all the tricks they can to do that. Retail doesn’t have a chance.

Many may disagree with me here ,but i don’t care. The truth is out there if anyone wants to look.

if anyone wants to test this, simply put your stop and watch it taken out on a level 2 which everyone has access to. Institutions can easily see where your stops are. They will hit them and force you out of the markets creating a volatile move.

There is much more to be said. but i m sure people already know all this stuff and its available publicly.

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No my friend, Days of just looking at L2/DOM is over. It used to work but now it doesn’t. I know how institutions work, they only rely on charts, volume & price actions. It would be stupid for anyone to not look at charts and price actions.

This is true, but only if brokerages allow them to do so which most of they times they do.

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It doesn’t matter whether you look at charts or dom or both or to the stars.

What matters is how good you are at taking the other guys money.

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rather, it would be better to say that, they make the chart by trading.

thats agreeable, but…

if this is the case, would’nt the charts have been a little more simpler to crack :grimacing: :sweat_smile: ?
what i feel is there’s something else which guides the markets more impactfully than charts…


That is nothing but big & smart money moving the markets. They have the power to do so. Retail doesn’t and he think the magical lines on charts move prices.

Simple example is paul rotter. Google him and see if charts make any sense. you will get the idea.

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I don’t seem to understand how you totally misinterpreted my simple answer and had the unneeded courtesy to correct me when in fact, you needed to correct your own comprehensive skills.

Yes they move the markets, I definitely agree you on that. But what you don’t seem to understand is you definitely need to look at the charts, volume & price actions to understand the market psychology behind the participants in the market before you make any moves from the perspective of instituionals/ prop traders. (Go on YouTube and search for 'SMB Capital". See how they do intra-day trading.)

You quoted an example of Paul Rotter, thinking that will prove your unsubstantiated point. But he clearly said " “I constantly try to read the psychology of the market and base my decisions on it.”
How do you think he does that? Does he have some kind psychic powers that allows him to know the psychology of the market?This is ridiculous, It doesn’t take a high IQ to understand because self-evidently due to the price actions, volumes and charts.

Very Contradictory Statements. If you’re smart enough you will understand why.

Also remember that, Market Makers and Institutions might seem like they are the same but they have very different objectives.


I think you misinterpreted my statement. When i say “he” i meant the retail traders, not you.

World is not centered around you.

I m not here to debate whether Price action works or not. Its not proven method to make money.

All i m saying is that institutions move the markets , not price action or some lines on chart.

Now you may disagree with me on that and that’s fine. you can believe whatever works for you.

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would be great to know if there’s anymore to add from the experts @siva @nithin