Welcome to the Engrbytrade™ (Engineer-by-trade) site home page. This site is a non-commercial research project supporting the hypothesis that market movements are based on structures created prior to, and implemented during, the course of predetermined time frames. Research includes intermarket structural analysis of financial market data to examine any correlation between two or more financial markets that may include stocks, bonds, currencies and commodities.
Stock markets are subject to, in part, business practices of Market Makers who buy and sell stock in an inverse manner to that of corporations selling retail merchandise. When a corporation lowers the price of its inventory, consumers buy more and when the price moves higher consumers buy less. Market Makers do just the opposite in order to “maintain a fair and orderly market in their stocks”. As Market Makers continue to provide lower prices for stocks, the public and institutions eventually start selling and Market Makers accumulate this stock as additional inventory. When Market Makers continue to increase the price of stocks, the public and institutions move in and start buying, resulting in a distribution of stock from a Market Maker’s inventory. This is just one process that provides part of a foundation for developing calculations needed to understand where investors and institutions are in the accumulation / distribution process.