3The bull run of this crypto cycle is just beginning.
many will earn millions. but 90% will lose everything. understanding market manipulation separates the winners from the losers.
a small #tutorial on the topic of market manipulation.
Everyone knows that whales often manipulate the market, but no one suspects how often this happens. each of us loses money. They manipulate the market and try to remain undetected, but usually their trading follows this pattern:
accumulation of assets - pump - re-accumulation - pump - distribution - reset - re-distribution - reset
8 basic whale manipulations:
1 hunt for stop losses
whales initiate cascades of stop-loss orders, identifying clusters of stops at critical levels. They then drive prices towards these levels by executing significant buy or sell orders to trigger stops, causing prices to fluctuate rapidly.
2 drawing graphs
manipulators create chart patterns by buying on resistance or selling on rebounds. these patterns, perceived as indicators by retail traders, influence the direction of the market. they create false levels, misleading traders dependent on the chart.
3 FVGs are formed as a result of intense buying and selling, causing noticeable price shifts and gaps on the chart. After a sharp rise, prices usually decline, favoring large players and encouraging latecomers to exit their positions.
4 two-sided market
whales place large orders to both buy and sell, manipulating prices by raising and selling them. they create rallies or press them down by buying dips. Retail traders, limited to one direction, become at the mercy of rapid price fluctuations.
5 range manipulation
whales tend to reduce the number of entries, pushing up prices, which encourages some traders to exit with a loss, consolidation phases usually end after 4-5 touches, with the upper or lower lines breaking if the price reaches the breakout point
basic rules on how to avoid manipulation
3. Allow key support/resistance levels to break through
4. avoid buying pumps or chasing small volumes
5. Analyze bid/ask spread
