Those who understand price manipulation will make millions! Here's how whales manipulate the crowd
Those who understand price manipulation will make millions!
Learn it now or continue to be outplayed.
· Time: 5 min
· Profit: 100x by the end of 2024
Here's how whales manipulate the crowd.
Have you ever wondered how all these "smart money" players like whales, insiders, and manipulators operate in the market?
They form a group that controls the market and influences price direction.
And today, I'll reveal all the price manipulation they leave behind on the chart.
Simplifying things, trading for smart money players follows this pattern:
1. Asset accumulation
2. Pump
3. Re-Accumulation
4. Pump
5. Distribution
6. Dump
7. Re-Distribution
8. Dump
Whales know that due to their huge capital, they cannot throw $10M onto the market in just one transaction.
Such large transactions would cause an immediate price pump or dump.
This would signal to everyone that a major player has bought or sold the token.
Their main goal is to stay undetected while accumulating assets.
To avoid detection, large players use their capital to maintain prices at certain levels.
At the same time, they acquire a significant number of tokens through numerous small transactions.
Let's quickly sum up actions of smart money:
Phase 1
: Buy at specific levels within trading ranges.
Phase 2
: Sell at higher levels to take profit.
Now, you'll explore some price manipulation techniques used by these pros:
① FVG (Fair Value Gap) manipulation:
Fair Value Gaps are powerful tools that traders use to identify market imbalances and inefficiencies.
FVGs happen when buying or selling pressure causes significant price movements, creating gaps on price charts.
Over time, the price tends to move towards closing the FVG.
This makes it a reliable support or resistance level.
Here are some details:
➬ The big player doesn't benefit when many people profit.
➬ Smart money is always thinking about how they can deceive traders.
➬ After a pump, the price tends to roll back.
➬ So that those who entered after the FVG formation closed their positions.
How it can be useful for us:
Wait for the impulse and identify the gap between the 1st and 3rd candles.
Also remember simple principles:
~ Short FVG acts as resistance.
~Long FVG acts as support.
② Range manipulation:
Artificially created situation.
The aim is to reduce participation in the actual price movement by pushing the price in one direction, leading some traders to exit with losses.
Here are some details:
➬ Consolidation cannot last forever.
➬ After 4-5 touches of the top or bottom lines, they're usually broken.
➬ However, when the price hits a breaking point but then returns, it's considered manipulation.
How it can be useful for us:
Once the manipulation has occurred, it establishes a robust support or resistance level that influences how the price reacts.
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