For a long time, we have known that the manipulating forces (including exchanges, trade bots, market makers) can sweep long/short orders by 'snatching' candle wicks (also known as tails, candle legs) up very high or low so that the orders will hit stop loss or get liquidated.
We often think they will do this periodically every few days or weeks after reviewing the long/short volume situation to sweep and make money. Each time they sweep like this, the exchange and this manipulating group will earn a huge amount, hundreds of millions of dollars is normal.
However, recently future traders have frequently noticed the phenomenon where their long/short orders hit stop loss right at the bottom/top of the candle hour as the price is 'snatched' down/up to 'pierce' the order and then immediately return to the old price level.
The phenomenon occurs exactly as if there is an exchange bot that sees where traders place their stop loss, it will pull the price up/down to that level as it must (of course excluding stop loss orders that are too far away to be feasible to pull to).
The unfortunate thing here is that it sweeps right in the hourly candle and the sweep point is almost exactly your stop loss. If you watch the candle, you will see it just like a needle piercing up to your SL line and then pulling down.
To do this, the exchange must provide real-time order information to the trading bot or market maker to 'snatch' the price. In other words, they collude to rob!
Example image:
- When short $ADA points at the price 0.6545, the price is going down and there is no 'wick' at the level of 0.65.
- When placing SL at the price of $0.6608, the price moves for a few minutes and starts to 'crawl up'.
- The price suddenly rose quickly to $0.6611 and then pulled back to $0.65, of course, it has 'pierced' this order at a level just different by $0.0003 enough to 'rob'.
This is just one of hundreds, I emphasize HUNDREDS of orders that have been 'pierced' SL in such a way.
For 'naughty' tokens like BNX, ACT, TST... or newly listed tokens, top tokens increasing in price, tokens with small volume... the behavior of sweeping orders is even more blatant, with wicks above and below densely like fish bones destroying all long/short.
Even ADA, which is in the top 10 trading volumes, also plays dirty in this way, what hope do you have for this Crypto gambling house? Perhaps this is also the reason why ADA has died tragically from the previous cycle even though it is a fairly good project. It is highly likely that the dev team of the projects colludes with this working group. Occasionally, they pull out tokens to dump for spending money. ADA is done, you should drop this one immediately!
The trading volume of futures is tens of times higher than spot. Currently, only CBase has high spot trading, while other exchanges are no different from disguised gambling houses where players are always robbed in many different ways!
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