Have you ever wondered why the vast majority of people always lose money in the cryptocurrency market? Market manipulators are pulling the strings. I discovered their dirty tactics and they are worse than you can imagine. They will hate me for revealing this but I don't care (I will delete this soon though)
We all know that big players love to manipulate the market, but you wouldn’t believe how often this happens. Traders and investors end up losing their funds and becoming exit liquidity every day. That’s why I decided to dig deeper and expose their dirty tricks.
How to identify market manipulation:
The most common signs of manipulation include:
Sudden price fluctuations not related to news
High volume in a short period of time
A surge in social media activity
Here are six market anomalies you should learn to easily identify these manipulation tactics 👇
1. Pump & Dump
This scheme involves a group of people working together to artificially inflate the value of a coin. They target low-cap coins on small exchanges. Insiders buy in early, and when enough traders buy, they sell.
2. Whale Manipulation
Whale manipulation is a technique used by large investors to manipulate the price of a currency by deliberately buying or selling large amounts of it. This can cause the price to rise or fall. Retail traders, with limited options, are often overwhelmed by rapid price fluctuations.
3. Wall Spoofing
Fake quotes refer to placing large buy and sell orders in the order book and then canceling them before they are executed. This is done to simulate a false buy and sell wall in the order book, create bullish or bearish sentiment, and deceive retail investors.
4. Insider Trading
Insider trading is more of a "front-running" scheme in which people trade based on secret information that can significantly affect the price. Insider trading often involves improper early buying or selling of assets.
5. Range Manipulation
Manipulators push prices up or down to reduce entry points, causing traders to exit at a loss. Consolidation usually ends after 4-5 touches, breaking through the upper or lower line. If the price reaches the breakout point but reverses, it may be manipulation.
6. Triggering Stop Hunting
A stop loss is when a market manipulator manipulates the price of a token to trigger a stop loss order. Since most traders set their stops at similar levels, the manipulator sells to push the price down, triggering the stop loss, causing volatility, and then buys back at a lower price.
Manipulators try to create false impressions in the market in order to profit from them. The following is a classic pattern of price manipulation:
Accumulate - Raise - Reaccumulate - Raise - Distribute - Sell - Redistribute - Sell
Key rules to avoid being beaten by market manipulators:
Waiting for price movement confirmation
Don’t buy coins that are rising rapidly
Don't set stops at key levels or round numbers
Be patient, follow your plan, and you will be successful.
Game Plan to Outwit the Manipulators:
Buy during the accumulation phase
Selling during the allocation phase
I hope you found this article helpful. If you have any feedback or thoughts, please leave them in the comments.
