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When I study the cause, one question often comes to my mind. Is the market manipulated by the institutions or some one with great power like the centrol banks in the world? As Al said the market is not random and every bar matters, the institutions have enough power to control the market. Then what they think and do decide where the market goes. If the market is really controled and manipulated by the big institutions, nothing is more important than the skill to follow them in the trade. No system and mothed is really useful as they are not able to follow the institutions. If the institution are doing something against our system we have to give up, otherwise we will fail. Becasue the institutions do not care about our system. Do you think the market is manipulated by the big institutions? Do you this is what the cause is teaching us? Thank you for your discussion and reply.
The way I see it is that it all comes down to how much volume is being traded in the instrument. If it's a small cap, then yes, one big institution can manipulate price moviments and you'd be exposed to what someone behind that institution decides to make.
However, for high volume instruments, like the indexes and large caps, the dynamic is different because there are dozens of big institutions fighting for the same money and no one alone have enough money to surpass all the others.
So a price manipulation would require that the majority of the big ones agreed between them on something. I don't believe that would ever happen because they are actually trying to get each others money. If they ever do agree on something, there would be not enough money on the other side of the table and, therefore, they would not be able to cash their profit, making the agreement useless.