In this episode of Markets Mechanics Lab, we look at the mechanics behind chart movements and break down the core roles of market participants.
š THE ANSWERS COVERED IN THIS EPISODE:
What is an aggressive participant? To move price, someone must execute a market order. An aggressive buyer demands an instant fill by absorbing sell limits, while an aggressive seller fills immediate buy limits.
The passive strategy: Large-scale participants don't start with aggressive orders. They use a chain of resting pending orders to accumulate or distribute positions quietly without pushing the price against themselves.
The tactical switch: Once the majority of their institutional budget is filled, they switch tactics and introduce aggressive orders to efficiently drive price toward the next liquidity zone.
The retail fix: Relying on constant immediate market orders often leads to chasing price. To build discipline and match professional timing, individual traders should practice using pending orders.
š HOMEWORK FOR THIS LESSON:
Open your charting software or simulation/demo account and follow one strict rule: resting pending orders only for both entries and exits. Share your observations in the comments!
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