$SPY | Playing the Game of Liquidity, Stop Hunting, and Market Manipulation with Institutional Investors: thread ๐งต
๐ How to Trade WITH Them, Not Against Them ๐
This thread covers all of the above and REAL LIVE Examples from this past week ๐
Let's dive in โฌ๏ธ
๐ How to Trade WITH Them, Not Against Them ๐
This thread covers all of the above and REAL LIVE Examples from this past week ๐
Let's dive in โฌ๏ธ
Ever been stopped out of a trade only to see the market reverse in your favor? ๐
If you can relate, you're in the right place!
In this thread, we'll explore how to trade with institutions and use their strategies to your advantage
I hope this ๐งตprovides value to your journey!
If you can relate, you're in the right place!
In this thread, we'll explore how to trade with institutions and use their strategies to your advantage
I hope this ๐งตprovides value to your journey!
โ๏ธ The world of trading is like a chess game, and think of institutional investors as seasoned grandmasters
They have immense resources, experience, and strategies at their disposal, but you can still be an opponent if you understand their moves ๐ค
Let me explain...
They have immense resources, experience, and strategies at their disposal, but you can still be an opponent if you understand their moves ๐ค
Let me explain...
๐ Liquidity:
Institutional investors love it, and you should too!
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 ๐
Institutional investors love it, and you should too!
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 ๐
Institutions often create artificial Supply/Demand by placing large orders to lure other market participants
This can distort the true market sentiment and trick others into following the herd
Use this knowledge to set smart stop-loss levels/avoid getting caught in their traps
This can distort the true market sentiment and trick others into following the herd
Use this knowledge to set smart stop-loss levels/avoid getting caught in their traps
What Is Stop Hunting?
Stop hunting is a strategy that involves large traders pushing the market to trigger the stop-loss orders of other traders
The stop-loss orders force those traders out of their positions
Once those orders are cleared, the market reverses
(1/3) ๐
Stop hunting is a strategy that involves large traders pushing the market to trigger the stop-loss orders of other traders
The stop-loss orders force those traders out of their positions
Once those orders are cleared, the market reverses
(1/3) ๐
Stop hunting 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
(2/3) ๐
This allows the big players to accumulate or unload positions at more favorable prices
(2/3) ๐
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
How you should trade: ๐
These levels can act as magnets for big players, who may attempt to trigger those stops before reversing the price in their desired direction
How you should trade: ๐
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 this week: ๐
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 this week: ๐
We can see price sweep below the previous day's low on Friday & held on to the 15 min, @notmrmanziel made the 15 min sweep popular within the community! ๐งน
This shows buyers were still active at this level, & sellers got trapped causing big players to push the price higher ๐
This shows buyers were still active at this level, & sellers got trapped causing big players to push the price higher ๐
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
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
By positioning yourself strategically around these levels, you can take advantage of the resulting price movements!
โ๏ธ Keep in mind that it's essential to have a thorough understanding of technical analysis and risk management to effectively implement such tactics
โ๏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 ๐ง
Educate yourself on these market dynamics, stay informed, and remain vigilant
While liquidity, stop hunting, and manipulation exist, being aware of their presence can help you make better trading decisions ๐ง
Stay smart and adapt! ๐ช
Educate yourself on these market dynamics, stay informed, and remain vigilant
While liquidity, stop hunting, and manipulation exist, being aware of their presence can help you make better trading decisions ๐ง
Stay smart and adapt! ๐ช
That's a wrap!
I hope you found value within this ๐งต on liquidity, stop hunting, and market manipulation in the stock market ๐
I hope this simple thread helped someone, RT or like if useful, it is much appreciated ๐
Please don't hesitate to ask questions ๐
I hope you found value within this ๐งต on liquidity, stop hunting, and market manipulation in the stock market ๐
I hope this simple thread helped someone, RT or like if useful, it is much appreciated ๐
Please don't hesitate to ask questions ๐
As always, to end this thread, I will leave you with a few follow suggestions: โ
@DBookTrading: Volume
@fabiansoss: Volume
@notmrmanziel: Edu
@Jake__Wujastyk: Edu
@Strat_Trades: Edu
@RockyBTrades: Edu
@cs_tradess: Edu
@Braczyy: Edu
@TSDR_Trading: Edu
@SpencerParsons0: Charts
@DBookTrading: Volume
@fabiansoss: Volume
@notmrmanziel: Edu
@Jake__Wujastyk: Edu
@Strat_Trades: Edu
@RockyBTrades: Edu
@cs_tradess: Edu
@Braczyy: Edu
@TSDR_Trading: Edu
@SpencerParsons0: Charts
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