Understanding market manipulations is what separates winners from losers.
Many will charge $1,000 for this info, but not me.
Here's a š§µ on how whales take money from ordinary people and how to avoid their traps š
It's well-known that whales and insiders significantly influence and manipulate our market.
However, few realize the extent and frequency of this manipulation.
Traders lose funds daily, becoming their exit liquidity.
That's why I decided to investigate and expose their tactics.
Whales often aim to stay unnoticed, but their trading typically follows this model:
1. Asset accumulation
2. Pump
3. Reaccumulation
4. Pump
5. Distribution
6. Dump
7. Redistribution
8. Dump
By studying this pattern, I identified the main manipulations of whales.
ā Faking the patterns:
Whales create chart patterns by buying at resistance or selling during bounces. These manipulated patterns mislead retail traders who rely on them as market indicators, creating false levels and influencing market direction.
ā” Stop loss hunting:
Whales identify clusters of stop-loss orders at key price levels.
They then drive prices toward these levels by executing significant buy or sell orders, triggering the stops and causing rapid price fluctuations.
ā¢ Range manipulation:
Whales reduce their entry price by pushing prices, causing some traders to exit at a loss.
Consolidation phases usually end after 4-5 touches, breaking the top or bottom lines.
If the price hits a breaking point but then reverses, it's likely manipulation.
ā£ Fair Value Gap (FVG):
FVGs occur from intense buying or selling, leading to notable price shifts and chart gaps.
After a good pump, prices usually does a pullback, benefiting major players and prompting latecomers to exit positions.
ā¤ Stop runs:
Large players push prices past critical support or resistance points to trigger stop orders, creating cascading movements.
They then swiftly reverse within the range, capitalizing on stop liquidations and catching traders off guard.
ā„ Wash trading:
Wash trading is a market manipulation technique where traders artificially inflate an asset's value by increasing its trading volume. A wash trader typically moves crypto between wallet addresses or exchange accounts they control to create the illusion of high trading activity and demand.
ā¦ Spoofing market orders:
Spoofing involves placing and canceling fake orders to deceive traders and bots, impacting price movements and posing detection challenges.
To not fall into this trap, just use limit orders and avoid reacting to transient walls.
ā§ "Closing the jaws":
This is when whales place significant buy and sell orders at closing prices to influence the market.
Remember that descending buy walls and ascending sell orders compress prices, trapping retail longs and benefiting shorts.
āØ Two-sided market:
Whales place large orders on both bid and ask sides, manipulating prices by pushing them up and selling. This creates rallies or presses prices down while buying dips.
And retail traders, limited to one direction, get overrun by rapid price swings.
ā In the end, bonus ā
Here's a handy "cheatsheet" to keep you from being outplayed by these market movers š
ā¬ Avoid setting stop-losses at key levels.
ā¬ Wait for confirmation of price movement before investing.
ā¬ Allow a key support or resistance level to break.
ā¬ Resist the urge to buy into sudden pumps or low-volume trades.
ā¬ Examine the bid and ask spreads closely.
ā¬ Maintain patience, stick to your plan, and wait for the right opportunity.
If you found this thread helpful, don't forget to:
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