13 Tweets 21 reads Jun 08, 2023
$SPY | Exposing the game of liquidity, stop hunting, and market manipulation: mini ๐Ÿงต
This thread covers all of the above and REAL LIVE Examples from today that helped me secure 3 winning trades ๐Ÿ‘‡
s/o @notmrmanziel for the inspiration, $UPST killa ๐Ÿ”ช
Let's dive in โฌ‡๏ธ
Institutional investors often take advantage of liquidity to execute substantial trades without disturbing market prices
However, liquidity can also be used as a tool for manipulation ๐Ÿ‘‡
Big players sometimes create artificial demand or supply by placing large orders to lure other market participants
This can distort the true market sentiment and trick others into following the herd
Stop hunting is another common practice
It involves intentionally triggering stop-loss orders placed by retail traders to induce panic selling or buying
This allows the big players to accumulate or unload positions at more favorable prices
Continued...
Regarding stop hunts, being aware of common price levels where stop-loss orders tend to cluster can be helpful
These levels can act as magnets for big players, who may attempt to trigger those stops before reversing the price in their desired direction
Now, you might wonder how to navigate this landscape and even benefit from these strategies
While it's important to be cautious, there are ways to use liquidity and spot potential stop hunts to improve your trading decisions
Let's explore some live examples from today: ๐Ÿ‘‡
@notmrmanziel and I hit a beautiful trade-off the open on $UPST
We can see price sweep below the previous day's low and hold on to the 15 min
This shows that buyers were still active at this level, and sellers got trapped causing big players to push the price higher
$UPST Ex:
I also played this A+ setup off of Open $SPY. We see price being pushed a few cents below PML & previous Demand
Price then collected liquidity and closed above my Zone, big players manipulate price using stop hunts/liquidity to move price where they please
$SPY | $TSLA Ex:
I only Trade w Volume/Price Action
One strategy is to pay attention to Volume Spikes
Surges in volume can indicate increased market interest or the presence of big players
By monitoring volume patterns, you may spot potential liquidity-driven moves & use them to your advantage
Lastly, by positioning yourself strategically around these levels, you can take advantage of the resulting price movement
โœ”๏ธ Keep in mind that it's essential to have a thorough understanding of technical analysis and risk management to effectively implement such tactics
Remember, knowledge is power ๐Ÿง 
Educate yourself on these market dynamics, stay informed, and remain vigilant
While liquidity, stop hunting, and manipulation exist, being aware of their presence can empower you to make informed trading decisions
Stay smart and adapt! ๐Ÿ’ช
That's a wrap!
I hope this thread sheds light on liquidity, stop hunting, and market manipulation in the stock market ๐Ÿ‘
I hope this simple thread helped someone, RT or like if useful, it is much appreciated ๐Ÿ˜Ž
Please don't hesitate to ask questions ๐Ÿ™Œ
Happy trading!
As always, to end this thread, I will leave you with a few follow suggestions: โœ”๏ธ
@DBookTrading: Volume
@ThiccTeddy: Volume
@fabiansoss: Volume
@cs_tradess: Consistency
@notmrmanziel: Edu
@Jduntrades: Edu
@RockyBTrades: Edu
@Braczyy: Edu
@TSDR_Trading: Edu
LMK if I miss any! ๐Ÿ‘‡

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