A price inflection indicates that the equilibrium between the bid and
the ask was broken because of underlying market activity (traders pushing
the price down instead of traders pushing the price up or vice versa). During
one trading minute, the equilibrium can be broken on one side and then
suddenly reverse to the other side. This usually happens when buyers and
sellers trade similar volume sizes with a similar determination.
In the course of trading, suppose that an institution intends to place
a large buy order. Either this large buy order will go as a block directly
between institutions or that institution will have to buy from the market.
Large orders placed at market usually push the price up. In order to go
unnoticed, a large order has to be fractioned into tiny orders that will be
brought to the market on a systematic basis. This must be done without
triggering a new uptrend before the whole lot has been bought. This requires
a careful tactical execution that involves a mix of order sizes and
timing variations. Institutions either use special order-placing algorithms
or obtain the assistance of a market maker.