Innovation Pharmaceuticals Inc (IPIX)

[MaskedCat]

Ok, you said the key word “ want to learn”.

Try this:

Market makers analyse the market vertically. They have a so-called order book where all our Take Profits, Stop Losses and pending orders are displayed. They simply don’t need any other information as they can influence the price movement.

Here is a vivid example of how the vertical view differs from the horizontal one:

Market Makers horizontal and vertical

While the Moving Average indicator signals Short, see the chart on the left, the cluster of Stop orders above the current price is clearly visible in the order book on the right. Market maker is interested in such clusters, and, as we can see, the price responds accordingly.

As we've mentioned before, market maker can't simply reverse the price. However, they can push it to the required level, move it towards the cluster of Stop Losses, or help form a pattern and "launch" it, if this is their goal, of course. In other words, a market maker acts against the market crowd, but on the other hand, they need another part of the crowd to push the price in the right direction.

https://fxssi.com/market-maker-see-market