Movement

We use statistical methods to identify any change in longs, shorts, spreads and net positioning (net=longs-shorts) which is abnormal comparing to all available historical data.
Up blue arrow below the candles means the traders got long very fast. They may have added to their longs and/or reduced their shorts significantly.
Down red arrow above the candles means the traders got short very fast. They may have added to their shorts and/or reduced their longs significantly.
Blue triangle below the candles means traders’ longs had a significant positive move and vice versa red triangle below the candles means traders’ longs had a significant negative move.
Blue triangle above the candles means traders’ shorts had a significant negative move and vice versa red triangle above the candles means traders’ shorts had a significant positive move.
Yellow triangles below the candles show any abnormal change in spreading. positive move in spreading shows uncertainty of traders, and negative move in spreading shows more directional bias for traders.

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Application

To infer the movements’ signals, the market context is important.

For example, if you see movement signals you have to ask yourself these questions:

Do I have the signal in bearish or bullish environment (index)?
Where did the candle close? is it bullish or bearish candle?

If you are looking at speculators’ charts the best place to see the down red arrow is when we are bearish (index) and in correction phase (bearish movement on bullish candle) and vice versa for up blue arrow. Speculators buy on bearish moves and sell on bullish moves. They need liquidity.

If you are looking at hedgers’ chart, having bullish movements (blue up arrow) on demand zone is bullish signal and if you see bearish movements (red down arrow) on supply zone is bearish signal. Although hedgers trade against the price but most of the times their movements cause price to change direction (reverse or correction).

Blue arrow with blue triangle below the candle shows bullish momentum and vice versa red arrow with red triangle above the candle shows bearish momentum for the week. Price action and market context is important too. If you see bullish momentum with a doji or negative candle you have to ask yourself where that bullish momentum has gone? Who is absorbing it?

Red triangle below the candle due to reducing longs and blue triangle above the candle due to reducing shorts are showing liquidation and short covering.

Examples

Look at the Money Managers’ movements overlayed on Platinum chart.

Net OI negative change due to reduction of longs in an up move! Negative sentiment, we should find short set-up on apex. Although the sentiment is bullish but market context and traders’ move is signaling bearish behavior.
Net OI negative change due to reduction of longs in a bearish environment based on index. It’s highly probable the supply overhead holds.
Price is correcting and we have net negative change due to adding to shorts. Sentiment is bearish.
Net OI negative change due to adding shorts, but we are close to the base with extreme index. Long set-ups or managing shorts positions is recommended.
Net OI positive change due to reducing longs, speculators are covering shorts and we may have deeper pullbacks.
Another deeper test of the base, speculators added shorts but price is closing high! Shorts are being absorbed.
Net OI change due to speculators adding to their longs significatly on a correction in a bullish environment.
Deeper penetration to pick-up liquidity from supply overhead. The momentum came from the bullish movement (7). Price closed lower although we had another bullish move. From the next candles, the moves are bearish.
Price is on base (third test, base is getting weak), we have net OI negative change due to speculators adding shorts but price is closing higher. We expect deeper pullback.
We have negative sentiment, price picked-up liquidity from the supply and closed lower. What happened to the Net OI positive change? Speculators added to their longs and reduced their shorts simultaneously, but price closed lower. If we took short on supply, it’s a good sign the price may continue lower. Look at the next candles with negative moves which are supporting our short set-up.
Extreme net OI index with a doji candle after an extension. We have net OI positive change due to adding longs but price did not respond. Demand is absorbed. The next candles are accompanied with negative moves.
Bullish breakout due to bullish movement in a bullish environment.
Everything seems bullish except the inefficient run. No good timing to go long

Platinum

Consumers of Platinum buy more and more on lower prices and the producers sell more and more on higher prices. This can change the supply/demand balance and price moves to less liquid side of market.

Look at the bullish movements on demand zones and bearish movements on supply zones from PMPU traders. We had imbalance in supply/demand by their moves and price reacted consequently.

Platinum

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