I subscribe to premium solely for the multi second time frames, time frames that you may think are useless.
What if I told you this is the ONLY true way to detect manipulation?
HOW MANIPULATION WORKS
It’s a lot more subtle than you think.
The main driver of what moves the price of Bitcoin is the adverse orders from derivatives and leveraged positions. These orders being stop loss orders and liquidation orders.
In essence, it’s traders own decisions and orders, that cause price to move in an opposite direction.
You may have heard people say “Do the Opposite” or “Contrarian Trader”. What they mean is, the market seems to move in the opposite direction as the majority sentiment. Even the fear and greed index is used to convey this principal.
However there’s a true and technical way of understanding this.
As bitcoins price moves and consolidates SLOWLY and STEADILY in one direction, this extended period of time allows traders to enter leveraged positions in that same direction that’s moving price slowly up or slowly down.
Consequently, these trades are leaving opposite direction orders of a larger magnitude, such as stop loss orders for the “entire leveraged position size”. For example, Trader Bob uses $100 to inject liquidity into a long position, and opts to use 80x because of his confidence in Bitcoin moving up. Trader Bob then sets a stop loss order which “sells” his position and closes 100% of his leveraged position size. Trader Bob sets BELOW the current price a sell order for $8,000 - 80x his original $100 injected.
MANIPULATION comes in two distinct parts.
1) Price is held stable, to ACCUMULATE and ATTRACT more of the orders (long or short) - which the market makers and exchanges know is ACTUALLY creating more propellant and energy that will move price in the opposite way.
As an example, if Bitcoin is at 100,000 and the market makers and exchanges know there’s a mass amount of liquidity to reclaim at 80,000 - they will do a series of manipulations to get price to that level.
A) They will hold price steady while looking like Bitcoin is about to keep moving up. This attracts more longs with different leverage and stop loss orders creeping closer to 80,000
B) They will drop price slowly, and rise back quickly. The slow drop allows time for traders to work down the price scale those stop losses and liquidations, and the fast rise ensures they are left in tact and price won’t move low enough to trigger off the chain reaction.
SUMMARY OF 1)
Price is manipulation by being KEPT or STABLE from setting off the chain reaction of stop loss orders, which offering time to get traders to place more of these orders.
NOTE THAT Market Makers don’t place their own trades. They accommodate leveraging traders. That said, they do want their money back - so they want traders to place trades in the losing direction, while simultaneously having their own stop loss orders set a chain reaction that takes price to the level they want.
2) Price is PUSHED or FORCED into the chain reaction of stop loss orders and liquidation orders.
This is the manipulation that forces price, however we can understand the mechanics fully and understand the intentions.
Manipulators (hidden providers of liquidity) will place icebergs or many small orders, which generate large volume in small time intervals, and force bitcoin into the series of orders.
It is then the traders own adverse orders that automatically fulfill the price movement.
SUMMARY OF 2)
Price manipulation is initially forcing price into a series of stop loss orders and liquidation orders, and it’s possible to detect this.
USING THE 5 SECOND TIMEFRAME TO DETECT MANIPULATION
1) Add the basic VOLUME indicator to your chart
NOTE - Suggest using Binance BTC chart
2) Note the Volume moving average - which is shown as a Bitcoin Amount transacted each 5 second interval. This is commonly 0-2 BTC transacted per 5 second.
3) Observe each candle volume coming in. The time frame is small enough that you can see if it’s a buy or sell, very seldomly mixed buys / sells. This also serves as an alternative Order Book.
4) Watch for abnormally large volume transactions on the 5 second candles. It’s not out of the ordinary to spot a 5 second candle that contains 500 BTC bought or sold.
THIS is CERTAINLY the price manipulation that forces price into a sequence of stop loss orders.
5) Use that buy or sell manipulation volume candle as a que to understand the intention of where price is going to be forced.
THE WRAP UP
I hope to assist you all with understanding that the Bitcoin chart is very much INTENTIONAL and can be treated as a STRATEGIC BUSINESS due to the market cap being dominated by leveraging liquidity and few players who control it.
Love and luck to all,
- DD
What if I told you this is the ONLY true way to detect manipulation?
HOW MANIPULATION WORKS
It’s a lot more subtle than you think.
The main driver of what moves the price of Bitcoin is the adverse orders from derivatives and leveraged positions. These orders being stop loss orders and liquidation orders.
In essence, it’s traders own decisions and orders, that cause price to move in an opposite direction.
You may have heard people say “Do the Opposite” or “Contrarian Trader”. What they mean is, the market seems to move in the opposite direction as the majority sentiment. Even the fear and greed index is used to convey this principal.
However there’s a true and technical way of understanding this.
As bitcoins price moves and consolidates SLOWLY and STEADILY in one direction, this extended period of time allows traders to enter leveraged positions in that same direction that’s moving price slowly up or slowly down.
Consequently, these trades are leaving opposite direction orders of a larger magnitude, such as stop loss orders for the “entire leveraged position size”. For example, Trader Bob uses $100 to inject liquidity into a long position, and opts to use 80x because of his confidence in Bitcoin moving up. Trader Bob then sets a stop loss order which “sells” his position and closes 100% of his leveraged position size. Trader Bob sets BELOW the current price a sell order for $8,000 - 80x his original $100 injected.
MANIPULATION comes in two distinct parts.
1) Price is held stable, to ACCUMULATE and ATTRACT more of the orders (long or short) - which the market makers and exchanges know is ACTUALLY creating more propellant and energy that will move price in the opposite way.
As an example, if Bitcoin is at 100,000 and the market makers and exchanges know there’s a mass amount of liquidity to reclaim at 80,000 - they will do a series of manipulations to get price to that level.
A) They will hold price steady while looking like Bitcoin is about to keep moving up. This attracts more longs with different leverage and stop loss orders creeping closer to 80,000
B) They will drop price slowly, and rise back quickly. The slow drop allows time for traders to work down the price scale those stop losses and liquidations, and the fast rise ensures they are left in tact and price won’t move low enough to trigger off the chain reaction.
SUMMARY OF 1)
Price is manipulation by being KEPT or STABLE from setting off the chain reaction of stop loss orders, which offering time to get traders to place more of these orders.
NOTE THAT Market Makers don’t place their own trades. They accommodate leveraging traders. That said, they do want their money back - so they want traders to place trades in the losing direction, while simultaneously having their own stop loss orders set a chain reaction that takes price to the level they want.
2) Price is PUSHED or FORCED into the chain reaction of stop loss orders and liquidation orders.
This is the manipulation that forces price, however we can understand the mechanics fully and understand the intentions.
Manipulators (hidden providers of liquidity) will place icebergs or many small orders, which generate large volume in small time intervals, and force bitcoin into the series of orders.
It is then the traders own adverse orders that automatically fulfill the price movement.
SUMMARY OF 2)
Price manipulation is initially forcing price into a series of stop loss orders and liquidation orders, and it’s possible to detect this.
USING THE 5 SECOND TIMEFRAME TO DETECT MANIPULATION
1) Add the basic VOLUME indicator to your chart
NOTE - Suggest using Binance BTC chart
2) Note the Volume moving average - which is shown as a Bitcoin Amount transacted each 5 second interval. This is commonly 0-2 BTC transacted per 5 second.
3) Observe each candle volume coming in. The time frame is small enough that you can see if it’s a buy or sell, very seldomly mixed buys / sells. This also serves as an alternative Order Book.
4) Watch for abnormally large volume transactions on the 5 second candles. It’s not out of the ordinary to spot a 5 second candle that contains 500 BTC bought or sold.
THIS is CERTAINLY the price manipulation that forces price into a sequence of stop loss orders.
5) Use that buy or sell manipulation volume candle as a que to understand the intention of where price is going to be forced.
THE WRAP UP
I hope to assist you all with understanding that the Bitcoin chart is very much INTENTIONAL and can be treated as a STRATEGIC BUSINESS due to the market cap being dominated by leveraging liquidity and few players who control it.
Love and luck to all,
- DD
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.