is it true?

[Ironplates]

I've learned about a group that i would call "the smart money" in the financial industry, banks and major traders that manipulate prices by briefly pushing them below or above established levels to trigger stop-loss orders and raid liquidity before moving in the expected or opposite direction.

Algorithms allegedly designed to identify these liquidity pockets and exploit them by acquiring large positions, which are then strategically offloaded. especially during time periods to include times such as 7am to 11am, and 130pm to New York close.

Is this practice indeed prevalent? Are there any members in this forum willing to confirm or provide insights into this phenomenon?

[correct answers only]

 

[Ironplates]

 

[wxytrader]

I've learned about a group that i would call "the smart money" in the financial industry, banks and major traders that manipulate prices by briefly pushing them below or above established levels to trigger stop-loss orders and raid liquidity before moving in the expected or opposite direction.

Algorithms allegedly designed to identify these liquidity pockets and exploit them by acquiring large positions, which are then strategically offloaded. especially during time periods to include times such as 7am to 11am, and 130pm to New York close.

Is this practice indeed prevalent? Are there any members in this forum willing to confirm or provide insights into this phenomenon?

[correct answers only]

I don't use stop losses so not a problem for me. The use of stop losses as risk management is droned into retail to turn them into defacto bank machines for the "smart money".

 

[schizo]

Is this practice indeed prevalent? Are there any members in this forum willing to confirm or provide insights into this phenomenon?

Why are you so surprised? This ain't something that was invented only recently. This has been going on for ever. Really.

Also did you know 80% of the breakouts eventually fail? Well, these so-called "manipulators" are taking advantage of this because they also know that most noobs are easy targets because they set their stops just above or below the major price levels because they don't know any better than what they see on Youtube or read in the Investment 101 books because, well, they're idiots (figuratively speaking).

So remember, you can outwit these algos only 20% of the time, if even that.

 

[Ironplates]

Why are you so surprised? This ain't something that was invented only recently. This has been going on for ever. Really.

Also did you know 80% of the breakouts eventually fail? Well, these so-called "manipulators" are taking advantage of this because they also know that most noobs are easy targets because they set their stops just above or below the major price levels because they don't know any better than what they see on Youtube or read in the Investment 101 books because, well, they're idiots (figuratively speaking).

So remember, you can outwit these algos only 20% of the time, if even that.

so fade 80% of the breakouts and consume the world?

 

[Ironplates]

Why are you so surprised? This ain't something that was invented only recently. This has been going on for ever. Really.

Also did you know 80% of the breakouts eventually fail? Well, these so-called "manipulators" are taking advantage of this because they also know that most noobs are easy targets because they set their stops just above or below the major price levels because they don't know any better than what they see on Youtube or read in the Investment 101 books because, well, they're idiots (figuratively speaking).

So remember, you can outwit these algos only 20% of the time, if even that.

guess I found a 20% breakout

 

[schizo]

guess I found a 20% breakout

Unless you can do this consistently, consider yourself lucky.

 

[murray t turtle]

I've learned about a group that i would call "the smart money" in the financial industry, banks and major traders that manipulate prices by briefly pushing them below or above established levels to trigger stop-loss orders and raid liquidity before moving in the expected or opposite direction.

Algorithms allegedly designed to identify these liquidity pockets and exploit them by acquiring large positions, which are then strategically offloaded. especially during time periods to include times such as 7am to 11am, and 130pm to New York close.

Is this practice indeed prevalent? Are there any members in this forum willing to confirm or provide insights into this phenomenon?

[correct answers only]

%%
1]DOnt know about 7-8am premarket[CST] I so seldom trade then.
But since that pattern is noted in trading books 20years + more ;
could happen that way LOL
80] That maybe why some front ran your entry on chart #2 + made money while sleeping.
Looks like you may do better than 20 % ,early to rise, healthy, wealth wise LOL

 

[jnbadger]

I've learned about a group that i would call "the smart money" in the financial industry, banks and major traders that manipulate prices by briefly pushing them below or above established levels to trigger stop-loss orders and raid liquidity before moving in the expected or opposite direction.

Algorithms allegedly designed to identify these liquidity pockets and exploit them by acquiring large positions, which are then strategically offloaded. especially during time periods to include times such as 7am to 11am, and 130pm to New York close.

Is this practice indeed prevalent? Are there any members in this forum willing to confirm or provide insights into this phenomenon?

[correct answers only]

Correct answers only?

Well, in that case...

Yes, it's prevalent. Has been for a very very long time.

Insights? It's what I look for in my reversal strategy. And quite honestly, since I started taking advantage of it rather than being a victim of it, trading became fun again.

Confirm? You'll have to learn for yourself.

 

[Ironplates]

Unless you can do this consistently, consider yourself lucky.

its not luck