This happens when an investor with a huge market share "bails out". It could be seen as a manipulation, but more likely it's a STOP order for several thousand dollars that says "Sell at $200 for at least $100"
The quick gain after the "flash crash" is either the same investor buying back (too quickly) or another investor with a STOP that says "Buy at $100 for at most $250".
This is a relatively normal occurrence in volatile markets and more likely than not shows where computers are automatically buying and selling.
If you follow the pattern you can draw a "normal" distribution for the points and determine your own comfort level for buy and sell points.
This happens when an investor with a huge market share "bails out". It could be seen as a manipulation, but more likely it's a STOP order for several thousand dollars that says "Sell at $200 for at least $100"
The quick gain after the "flash crash" is either the same investor buying back (too quickly) or another investor with a STOP that says "Buy at $100 for at most $250".
This is a relatively normal occurrence in volatile markets and more likely than not shows where computers are automatically buying and selling.
If you follow the pattern you can draw a "normal" distribution for the points and determine your own comfort level for buy and sell points.