How Market Operators Work Against the Crowd?

in #tradinglast year

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The current situation with the SP500 is a perfect example of how the market always tries to outsmart the crowd.

What do we have?

A lot of negativity among macro news and the overall economic situation - people are scared, they want to sell.

A break below the rising trendline - medium-term traders are selling their longs.

A break below the intraday trendline - day traders are working on the short side.

Addition: a break below the loyalty. We gather longs' stops and pour additional blood into shorts.

As you can see, all 4 points were aimed at outsmarting both sides of the market, both longs and shorts.

🔸Goal: to put shorts into the market, to knock out "weak hands" from longs.

As for me, it's the perfect work of a market operator.

🔸Result: a major player has taken his position at the maximum imbalance point and then successfully pushed the price up with the help of shorts' stops and small participants who joined the upward movement along the way.

🔹Conclusion: perfect market closing + perfect price manipulation + bullish sentiment at the opening of a new week.

Can you work with such manipulations? Yes, of course.

I personally only work with such situations. I'm not interested in standard breakouts, inclines, etc. I'm interested in fake movements and points of maximum volume concentration

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