Key Concepts:
- Price movements are driven by liquidity imbalances, institutional order flow, and market efficiency.
- Markets do not have a fixed "fair value"; prices adjust dynamically based on participant behavior.
- Volatility and hedging flows can cause unexpected price moves, even without new information.
- Market inefficiencies arise when order flows repeat systematically, creating opportunities for traders.
- Institutional positioning and hedging activities often lead to short-term price distortions.
Formula: Price Change = Liquidity Impact + Order Flow Impact + Efficiency Impact + Volatility Impact
Adjust the inputs above to see how different market conditions affect price movements.