im i misunderstanding the market makers..

[eblip]

firstly i have had several discussions with others...who claim that the forex market can not be moved even by large institutions...but looking at my charts and listening to an ICT video...it appears that that is not the case.

from what i can see and from what i have learned...it seems that the market makers ..for example lets just say goldman sachs, are out to make some decent profits...

this is just totally hypothetical ...and is most probably wrong in all respects...but im guessing as this is how things work in my head....and i want to be set straight on who im really up against in this business.
so i can try and anticipate what they would do.

goldman look at the market and see the cable is trending down.
the retail traders also know the market is trending down and so they sell cable and set stops.

goldman now buys a considerable amount as the cable is falling in price ...so it buys when the price is dropping .....and the retail traders notice the market appears to be moving up now...and quite convincingly...the market moves up and takes out lots of the retailors stops and even passes through previous resistance level.
so the retailors have been stopped out of their deal and the other retailors see the swing up and think maybe price is going up and so they buy.....hence pushing the price higher.....and this makes it even more convincing to other retailors that price is on the up....

then at a certain price goldman sells a massive batch of cable...which dramatically moves the price down way below previous low......and if you look at what happens ...they now wipe out all the stops on the reatail traders......and are in on the downward trending cable at a high price......

is that right ...or wrong ...
if i am wrong then please correct me and i can then understand more correctly what i should be doing...
another question is ....who gets all the stops (is it the goldman guys...as the buyers set stop losses on their buy orders....so when price dropped and they got stopped out.....i assume the currency they bought is now sold.........but as goldman have already sold....who is holding the stopped out currency )...hope i have made it clear....

thanks to anyone firstly who can understand what i am trying to say....and secondly to anyone who can put an end to my confusion.
from the above...it means that in this case...goldman is setting the high...it can do the same on the low......it is making the market....and the best trader is probably the guy who knows EXACTLY what goldman is up to ....and in reality what the market says means very little..and the aim of technical analsysis is not really to understand the currency market and how it is affected by supply and demand....but it is to understand the goldmans...and ride their coat tails...
to read the data to understand the market makers......and do as they do.

[daydreamer65]

The Forex Market

There has been much discussion of late regarding broker spreads and liquidity. Many assumptions are being made about why spreads are widened during news time, these are built on an incomplete knowledge of the architecture of the forex market in general. The purpose of this article is to dissect the market and hopefully shed some light on the situation.

We will begin with an explanation of the purpose of the Forex market and how it is utilized by its primary participants, expand into the structure and operation of the market, and conclude with the implications of this information for speculators.

Unlike the various bond and equity markets, the Forex market has not generally been utilized, until recently, as an investment medium. While speculation has a critical role in its proper function, the lion’s share of Forex transactions are done as a function of international business.

continued at the webpage below.

FOREX FOR BEGINNERS

[cjthelegend]

I guess whatever role you play in the market, everyone is in it for a profit. I don't think market makers are necessarilly market 'manipulators' however, they are just a layer seperated from the brokers. There are lots of articles and recent webinars out there that have discussed the role of market makers recently. a google search might shed some light on these for you

[eblip]

thanks ill do just that...google some webinars if possible....
you see i currently really think they are market manipulators who make the market with their manipulation...of course natural disasters are fundamentals that are out of their hands....but other data like reports and things are still within their reach....evenhow interest rates affect the market is probably within the reach of anyone capable of moving a market...even if its just for a short period of time before they are overwhelmed by the market itself.
the truth is if you have the power to move a market ...then surley you can manipulate a market...unless like in the case of a tsunami..you will be overpowered by the effect of such a large fundamental....

at the end of the day these guys are top notch economists whose sole purpose is to get paid...big time...and from what i have seen recently over the past few years...they will stop at nothing to fulfil that brief.

im a bit swinging towards the fact that i think they even got a lot of educated traders conned...i just read an article above which pretty much said they dont manipulate the market...
but it seems they could by just holding back orders..etc.


hopefully the google search will shed some light on it.
or someone in the know will give me their educated opinion on the situation.

[cjthelegend]

I've done a little digging myself and forex pros porum actually have a webinar coming up tomorrow June 13th where they are in discussion live with a market maker. It might be a good oppertunity for you to raise any questions you want clarified.

I can 't post the link but if you google this...forex pros webinar marketmaker you will see the article that will allow you to sign up for the webinar if your interested. Gives you a chance to get answers straight from the horses mouth so to speak lol.

Hope this helps.

[rhodytrader]

Market makers (and I'm talking here at the inter-bank, not the broker, level) are inherently market manipulators. They move prices around tick by tick (and more in volatile times) to find the prices where the market wants to do business. Market makers are first and foremost looking to make the spread as many times as they can. Thus, they are mainly in the business of facilitating transactional flow while trying to keep their directional exposure to a minimum. Do they sometimes have long or short net positions? Sure, but not the types of positions hedge funds, etc. take on. Call the market makers the fine point drivers of price levels, but not the drivers of trends.