This indicator is based on the idea that prices are generated by the interaction between a Market Maker on one side (sometimes also called the "Composite Man") and Retail Traders on the other side (Retail Traders include simple retail, professional traders, whales, institutions...as a single entity).
These two opposite entities "play" the trading game on trading platforms/exchanges (crypto), which are neutral to the game.
Market makers are liquidity providers, and make profits either by charging a spread between buy and sell prices, and (also) by trapping retail traders into specific positions. Trading is a "zero sum" game in the sense that it generates a transfer of resources between these two specific players, which are indeed the Market Maker and Retail Traders. If Retail Traders are in profit, Market Maker is (temporarily) in loss, and viceversa. Market Maker goal is to squeeze profits out of Retail Traders, by inducing them to take wrong positions.
The Market Maker Method Indicator executes the following:
1) Identifies and plots candles that are generated by the Market Maker's moves (called "Shift Candles"); shift candles are "artificial" price/volumes moves, generated to induce retail traders into specific zones which are, essentially, traps. They are called Shift Candles as they generate abnormal (and mostly unexpected) price movements in either direction. They move the price from one zone to the next to execute the Market Maker strategy. Observe how often sudden (apparent) prices increases are followed by price crashes (stop hunt rise, drop); and observe how often sudden (apparent) price collapses are followed by price uptrends (stop hunt low, rise); sometimes these movements are made in progressive steps (generally, 3).
2) Fires open long/open short alerts based on the assumption that when Market Maker plots upwards shift candles, vivid green color, they are preparing for an upcoming price reversal (down); same, but opposite sign, for downwards shift candles. This is a counterintuitive logic for Retail Traders, that generally open long when price is rising, and open shorts when price is falling - jumping into Market Makers traps.
3) Plots the areas where price is expected to return (upwards or downwards) based on previous shift candles (called "Recovery Zones")
The script will be further developed to prevent early open long/open short alerts, trying to catch the Market Makers cycles in a more detailed way (to account for situations where artificial price moves are executed in consecutive steps, instead of single candles).
You can use this indicator on any timeframe and for any asset. You can connect the open long/open short alerts to trading bots to execute automatic trades.
Script sob convite
Only users authorized by the author have access to this script, and this usually requires payment. You can add the script to your favorites, but you will only be able to use it after requesting permission and obtaining it from its author — learn more here. For more details, follow the author's instructions below or contact SwissAlgo directly.
TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.
Instruções do autor
Contact me here to get access
Warning: please read our guide for invite-only scripts before requesting access.
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.
Only users authorized by the author have access to this script, and this usually requires payment. You can add the script to your favorites, but you will only be able to use it after requesting permission and obtaining it from its author — learn more here. For more details, follow the author's instructions below or contact SwissAlgo directly.
TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.
Instruções do autor
Contact me here to get access
Warning: please read our guide for invite-only scripts before requesting access.
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.