How does matchmaking work?

Hi, I am on a losing streak and here is why: apart from tilting(as a result of getting shanked every game) and not palying necessarily well, I have noticed that, in my past games, I have been playing with teams that are the same noob elo as me(silver 1, now 2), but against teams which consistently consist of 3-4 players from gold4 to gold2.. Therefor i am now not at all surprised that I have lost my last 5 and got demoted.. Does anyone have an explanation?
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