Recognizing such patterns is the key to winning.
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It's widely acknowledged that whales & insiders have a major impact on and manipulate crypto market
However, few understand just how extensive and frequent this manipulation is
Traders lose money every day, becoming exit liquidity for these big players
Whales often strive to remain inconspicuous, but their trading generally adheres to this pattern:
• Accumulation
• Pump
• Reaccumulation
• Pump
• Distribution
• Dump
• Redistribution
• Dump
Featuring these ones, I have pinpointed the key manipulations employed by whales
Faking the Patterns:
Whales manipulate chart patterns by buying at resistance or selling during bounces
These artificial patterns mislead retail traders who depend on them as market indicators, establishing false levels and steering the market's direction
Manipulation:
Whales lower entry prices by driving prices down, causing some traders to sell at a loss
Consolidation phases typically end after 4-5 touches, breaking either the top or bottom lines
If the price breaks a key level but then reverses, it's probably manipulation
Stop loss hunting:
Large traders, known as whales, locate clusters of stop-loss orders at crucial price points
They then manipulate prices toward these levels by executing substantial buy or sell orders, triggering the stops and causing rapid price swings
Fair Value Gap:
FVGs arise from intense buying or selling, resulting in significant price shifts and gaps on the chart
After a substantial upward movement, prices typically experience a pullback, which benefits major players and prompts latecomers to exit their positions
Wash trading:
Wash trading is a manipulation tactic where traders falsely inflate an asset's value by creating fake trading activity
They do this by moving cryptocurrency between their own accounts to make it look like there's high demand
Stop runs:
Major market participants drive prices beyond key support or resistance levels to activate stop orders, causing a chain reaction of price movements
Then, quickly reverse the trend within the established range, profiting from the stop liquidations & surprising traders
Spoofing market orders:
Spoofing is when someone places fake orders to trick traders and automated systems, influencing prices and making it hard to spot the manipulation
To avoid falling for this tactic, use limit orders and steer clear of reacting to temporary order walls
Two-sided market:
Whales place big buy & sell orders to influence prices, either driving them up by buying or pushing them down by selling. This causes price rallies or dips
Meanwhile, retail traders, constrained to one direction, are often overwhelmed by swift price movements
Closing the jaws:
This occurs when whales place substantial buy and sell orders at the closing price to impact the market
Note that descending buy walls and ascending sell orders squeeze prices, trapping retail longs and favoring shorts
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