the entry and exit of large amounts of money

One of the goals of traders is to minimize trading risk (meaning reducing the likelihood of factors that can cause losses in a trade).

Consider the image below. It is true that in range 3, due to the lack of money in the market, but with higher probability, this lack of effective money in favor of sellers is more noticeable. As observed, the financial and psychological stubbornness of traders in the downward direction gradually decreases (c > b > a). This means that the effective traders present in the market are less inclined to be aggressive in trades, which prevents the price from experiencing worse numbers and reduces the drop. By comparing the slopes of legs b and c, we see that the psychological stubbornness of traders in the selling direction has also decreased. This means that not only were they not willing to spend more money, but they also spent less money psychologically and with hesitation, or in other words, it took a longer time for them to be convinced to spend money in the selling direction. However, at the end of movement C, a bullish candle was formed that absorbed all the sell limit orders in that area, covering even the previous six candles

This occurred when: 1) There was generally no effective money in the market, 2) The financial and psychological stubbornness of traders in the selling direction was decreasing, 3) An inability to continue the decline occurred in a tension area.

In general, tension levels are extremely important for traders, and trades should be executed at these levels; otherwise, the trader may face higher-risk trades, lower chances of success, and increased costs.

Therefore, in the chart above, considering the three points mentioned and the bullish candle that is not large enough to be inconsistent with the market candles and is a sign of formation by smaller traders, we can understand that money has entered the market. The result of this is visible, and as long as the money inflow and price growth continue according to trend principles, we will see price movement. This means that the price will either reach the opposing framework level or we will witness a correction that covers more than 60% of the previous extension and becomes an extension itself, followed by a correction and a change in the price movement direction.

For traders, it is not always crucial to identify the exit of large traders and the end of a trend. Instead, sometimes individuals consider an exit strategy based on the end of a movement or reaching a tension level.

In the short term, the exit of money is often recognizable by the filling of the movement and reaching a state of equilibrium. This means that in the last 2-3 candles, if the price does not experience worse numbers and does not trade, and the close of these 2-3 candles is very close to each other, indicating that the price has reached a balance. The equilibrium point is where money is exiting, but not to the extent that it causes a trend change.

When we reach a certain level of skill, even without viewing market text information such as the market book or volume and order data, we can open a counter trade by observing the state of equilibrium.

According to the above chart, as the price approaches the upcoming tension level and the movement fills, money exits occur. This situation of indecision and struggle between buyers and sellers indicates that some of the trading volume is being liquidated.

As the price progresses, projections (price throws) decrease and depths increase. Additionally, at the end of high swings, candles with long shadows or Engulfing patterns are observed. These are signs indicating that the financial inclination of traders in the direction of the trend is decreasing, meaning that less new money is entering the market and traders' stubbornness and determination are diminishing. This can be a sign of money exiting the market.

Large traders' money is gradually exiting, and over time, other traders are also liquidating their positions. Towards the end of the trend, it is the money of small and retail traders that drives the price forward (those who entered the market late and used technical tools to identify the trend).

In swings B and C, part of the money from large traders exits. They usually do not liquidate their trades all at once, as this would create a large candle. Just as they entered the market gradually in multiple stages to avoid attracting attention and to keep their average purchase price low, they follow the same principle when exiting.