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I am seeing a lot of strong responses, and it is clear that many people on Twitter understand why this dynamic can occur.
Over short time horizons, price movements are driven by price insensitive end users who act as an
aggressor in the market.
You might have one participant looking to sell $1,000,000 of stock and another looking to buy only $250,000. Yet in that moment, the smaller participant can be the one exerting pressure, urgently crossing the spread as a taker, while the larger seller is content to work the order passively within a different time horizon.
In my view, real edge comes from identifying these agents, understanding their incentives and constraints, and recognizing how and when they are forced to engage with the market and create price discovery/ change.
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