BellCurve Distribution

The market does two common things, which are seeking liquidity and balancing price. Therefore, institutions always try to distribute the assets, relative to price and volume. Institutions or funds move with large volumes that drive the price. If price moves without volume that means it is offsetting their positions and not a fair distribution. With Bellcurve distribution, we may often find those redistributions or balancing events in the market. However, distribution appears as normal, or non-normal such as skewed left or right, platykurtic and leptokurtic formation. Depending of the variables, we are inserting. How do we determine which Bellcurve distributions may have the higher probability to balance the market. If we see, the probability mean is large (say above 70%), positive and negative standard deviation are equally distributed to the right and the left side, respectively. The following examples are when the market experiences a liquidity void.

In the following example, the variables skewed to the left side form the highest peak, thus not normally distributed. Look at the price and volume, relative to the negative impulse. So, no correction is needed. Same for the positive impulse.

If the price moves far away from the anchor point with multiple impulses or moves without a pullback (premium price) then the institutions will seek discounted levels to rebalance the market again.