VCs and whales manipulations wipe out the savings of 90% of people. Recognizing such patterns is the key to winning. Others might charge $1,000 for this, but I'm giving it to you for FREE.
Dive into this thread to learn how whales steal your money and how to avoid their traps ๐
Whales and insiders have a significant impact on the crypto market, often manipulating it to their advantage. Traders lose money daily, becoming exit liquidity for these big players.
Common Whale Trading Patterns:
- Accumulation
- Pump
- Reaccumulation
- Pump
- Distribution
- Dump
- Redistribution
- Dump
Key Manipulations:
1. Faking Patterns:
- Whales manipulate chart patterns by buying at resistance or selling during bounces.
- These artificial patterns mislead retail traders, establishing false levels and steering the market's direction.
2. Manipulation:
- Whales drive prices down, causing traders to sell at a loss, and then accumulate at lower prices.
- Consolidation phases typically end after 4-5 touches, breaking either the top or bottom lines. If the price reverses after breaking a key level, itโs likely manipulation.
3. Stop Loss Hunting:
- Whales locate clusters of stop-loss orders at crucial price points.
- They manipulate prices toward these levels, triggering the stops and causing rapid price swings.
4. Fair Value Gap (FVG):
- FVGs arise from intense buying or selling, resulting in significant price shifts and gaps on the chart.
- Prices typically pull back after a substantial upward movement, benefiting major players and prompting latecomers to exit their positions.
5. Wash Trading:
- Traders falsely inflate an asset's value by creating fake trading activity.
- They move cryptocurrency between their own accounts to create the illusion of high demand.
6. Stop Runs:
- Major market participants drive prices beyond key support or resistance levels to activate stop orders, causing a chain reaction of price movements.
- They quickly reverse the trend within the established range, profiting from the stop liquidations and surprising traders.
7. Spoofing Market Orders:
- Spoofing involves placing fake orders to trick traders and automated systems, influencing prices and making it hard to spot the manipulation.
- To avoid this tactic, use limit orders and avoid reacting to temporary order walls.
8. Two-Sided Market:
- Whales place large buy and sell orders to influence prices, causing price rallies or dips.
- Retail traders, constrained to one direction, are often overwhelmed by swift primovements.
9. Closing the Jaws:
- Whales place substantial buy and sell orders at the closing price to impact the market.
- Descending buy walls and ascending sell orders squeeze prices, trapping retail longs and favoring shorts.
By understanding these tactics, you can better navigate the market and avoid becoming a victim of whale manipulation.