medium · Volume Spread Analysis background-trend-context

When a market-maker is 'bullish' but the current price is under pressure, why might they mark the price down sharply at the open?

  1. To discourage institutional buyers from entering the market.
  2. To create a 'shake-out' and fulfill their own buy orders at better prices.
  3. Because they are legally obligated to match the sentiment of the news.
  4. To clear the sell orders at the top of the range before a decline.

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