“Masterclass in Cloning Sharks: Outsmarting Market Makers to Dominate XAU/USD”
Introduction: The Shark’s Perspective
In the financial markets, market makers—often referred to as “sharks”—thrive by hunting retail traders. They exploit predictable behaviors, weak stop-loss placements, and emotional decision-making. These predators aren’t here to play fair; their sole aim is to capitalize on retail inefficiencies and manipulate price to accumulate positions at premium levels.
To succeed as a trader, you need to think like a shark. Understand their mindset, anticipate their moves, and position yourself to ride their wave, not get swallowed by it.
The Psychology of the Sharks
Sharks are calculated, patient, and ruthless. Their attitude and behavior are governed by a deep understanding of the market and a complete disregard for retail traders’ emotions. Here’s how they operate:
1. Predatory Patience:
Sharks don’t rush into trades; they wait for retail traders to overcommit at predictable levels. They know that retail traders often react emotionally, and they exploit this to the fullest.
2. Manipulative Attitude:
Sharks think several moves ahead, intentionally creating patterns that retail traders are taught to trust. This could mean crafting a convincing breakout only to reverse it or engineering false retests that suck traders in.
3. Zero-Sum Mentality:
For sharks, every stop-loss hit is a gain. They understand that retail losses create the liquidity they need to execute their larger institutional trades. They approach the market as a battlefield, where only the strongest survive.
4. Calm Amid Chaos:
Unlike retail traders who panic during sudden moves, sharks thrive in volatility. They deliberately create chaos by pushing price aggressively into liquidity zones, knowing that confusion breeds mistakes.
The Psychology of Retail Traders
Retail traders, by contrast, are ruled by emotions—fear, greed, and hope. This makes them easy prey for sharks. Let’s break down their typical behaviors:
1. Overconfidence in Patterns:
Retail traders rely heavily on textbook patterns and indicators. They see support and resistance levels as invincible and fail to consider that sharks intentionally manipulate these levels.
2. Fear of Missing Out (FOMO):
Retail traders often chase price movements, especially during breakouts. Sharks exploit this by pushing price just beyond key levels to trigger FOMO-driven entries, only to reverse and trap them.
3. Stop-Loss Reliance:
Retail traders place stops at obvious levels, such as Fibonacci retracements, swing highs/lows, or psychological round numbers. Sharks hunt these stops relentlessly.
4. Emotional Reactions:
• Fear: Retail traders panic when price breaks below their support level, leading to emotional exits at the worst possible moments.
• Greed: They overleverage positions, trying to “win big,” making them even more vulnerable to traps.
• Hope: Retailers hold onto losing positions, hoping for a reversal, even as sharks continue to target their liquidity.
The Market Maker Blueprint
Market makers follow a simple but ruthless strategy:
1. Identify Liquidity Pools: Retail stop-loss clusters become the primary target. These are zones where retail traders place stops based on key support and resistance levels, Fibonacci retracements, or psychological price points.
2. Create False Moves: Sharks engineer fake breakouts or breakdowns to force retail traders into bad positions, triggering their stops and fueling liquidity.
3. Exploit Imbalances: Once liquidity is swept, market makers reverse the price toward institutional targets, leaving retail traders trapped on the wrong side.
In XAU/USD, the current setup provides a textbook opportunity to understand and capitalize on these manipulations. Let’s break it down.
Comprehensive Technical Analysis: The Shark’s Hunting Grounds
1. Liquidity Zones
Market makers target liquidity above and below the current price:
• Above the Price:
• 2,664.26 (100% Fibonacci): Retail breakout traders place buy stops here, expecting continuation. Sharks will trigger these orders to trap overleveraged buyers.
• 2,670.36 (127.2% Extension): A classic level where late buyers FOMO into the market, providing the perfect trap.
• Below the Price:
• 2,647.12 (23.6% Fibonacci): Retail longs cluster stops here, viewing it as strong support.
• 2,641.83 (0% Fibonacci): A fair value gap (FVG) containing untapped liquidity. Sharks drive price here to absorb retail stops and establish institutional positions.
2. Volume Profile
• Point of Control (POC) at 2,653.04: Retail traders treat this as a pivot level. Sharks exploit this expectation, faking retests to entice traders into bad entries before sweeping liquidity.
• Volume Void Below 2,647.00: This low-volume zone represents inefficiency—a magnet for market makers to drive price downward, triggering stops en route to deeper liquidity.
3. Moving Averages as Traps
• EMA 21 (~2,650.40): Retail traders often use short-term EMAs as dynamic support. Sharks leverage this by creating quick dips below to trigger stops, only to reclaim the level later.
• SMA 50 (~2,655.69): Acting as medium-term equilibrium, this zone aligns with the 61.8% Fibonacci retracement, providing a magnet for bullish continuation post-reversal.
4. Candlestick Psychology
The recent price action reveals:
• Long Wicks at Key Levels: These reflect retail hesitation and institutional order absorption. Sharks are laying the groundwork for the next liquidity sweep.
5. Harmonic Patterns and Wave Structure
• Wave 4 Correction: Sharks are preparing a liquidity grab during the Wave 4 dip, targeting the FVG zone (2,641.83–2,645.00). Wave 5 targets lie at the 127.2% Fibonacci extension (2,670.36), where breakout buyers will likely get trapped.
The Market Maker’s Phases of Attack
Phase 1: The Bearish Liquidity Grab (Retail Trap Breakdown)
The shark’s first move is to create panic among retail buyers by driving the price below key support levels. This triggers stop-loss orders and tempts breakout sellers into shorts.
Execution Steps:
1. Target Stop Zones:
• Below 2,647.12 (23.6% Fibonacci): Prime stop-loss zone for retail longs.
• Below 2,645.00: A deeper cluster of stops aligning with prior session lows.
2. Sweep Liquidity into the FVG Zone:
• Zone: 2,641.83–2,645.00: Sharks absorb liquidity here, preparing to reverse the trend.
Phase 2: The Bullish Reversal (Trap Sellers and Squeeze)
After absorbing liquidity, sharks reverse the price upward, trapping retail shorts.
Phase 3: Trap Breakout Buyers (Swing High Reversal)
The final move is to exploit retail FOMO as breakout buyers pile in above 2,664.26. Sharks reverse price aggressively, driving it back into equilibrium.
Final Thoughts: Outsmarting the Sharks and Becoming One
Trading success isn’t just about surviving the sharks; it’s about learning to think and act like them. Sharks dominate because they combine patience, strategy, and ruthless execution. They see beyond what retail traders see, act without emotion, and leverage market psychology to their advantage. To win big, you must stop being the prey and start evolving into a predator.
Here’s how you can clone the shark’s mindset and tactics to transform your trading:
1. Adopt a Predator’s Patience
Sharks don’t trade for the sake of trading—they wait. They analyze the market and act only when the conditions are perfect. As a trader:
• Stop chasing every move. Focus on high-probability setups and let the liquidity sweeps play out fully before entering a trade.
• Plan your attack zones. Identify key liquidity pools, such as stop-loss clusters and untested fair value gaps (FVGs). These zones are where the real opportunities lie.
Remember, patience is a weapon. Retail traders panic or rush to enter trades, but sharks understand that timing is everything.
2. Think in Liquidity, Not Levels
Retail traders fixate on static support and resistance levels. Sharks, on the other hand, think in terms of liquidity. Liquidity pools are the fuel for market moves, and identifying them gives you the edge.
• Look for zones, not lines. Liquidity often lies just beyond obvious levels like Fibonacci retracements or swing highs/lows.
• Expect false breakouts and breakdowns. Sharks deliberately push price beyond these levels to grab stops and fake out retail traders. Use this knowledge to position yourself for the reversal.
By focusing on where liquidity is concentrated, you align yourself with institutional flow and avoid the traps set for retail traders.
3. Master the Art of Manipulation
To truly think like a shark, you must understand how they manipulate retail traders. Sharks create illusions—fake breakouts, false trends, and deceptive wicks—to lure retail traders into predictable mistakes.
Here’s how you can leverage this knowledge:
• Watch for exhaustion. Sharks often leave clues, such as long wicks at key levels, signaling that they are absorbing liquidity and preparing for a reversal.
• Anticipate traps. If a breakout looks “too clean” or happens on low volume, it’s probably a fake. Position yourself to take advantage of the reversal instead of chasing the move.
By understanding how sharks manipulate, you can use their tricks to your advantage.
4. Develop Emotional Immunity
Retail traders are emotional creatures. Fear of loss, greed for gains, and hope for reversals are their undoing. Sharks thrive on this weakness, creating chaotic conditions to force emotional decisions. To clone the shark’s psychology:
• Detach from outcomes. A single trade doesn’t define your success. Focus on executing your strategy flawlessly.
• Use logic, not emotion. Before entering a trade, ask yourself: “Am I acting on fear or greed, or is this move supported by data and analysis?”
• Embrace losses. Sharks don’t fear losing because they know the bigger picture. A calculated loss is part of the process of winning big.
When you control your emotions, you stop reacting like prey and start thinking like a predator.
5. Build a Ruthless Execution Plan
Sharks don’t hesitate. They act decisively once the conditions align. To trade like a shark, you need a clear execution plan:
1. Identify Liquidity Zones: Know where retail stops are clustered above and below the price.
2. Wait for the Sweep: Let the market move into the liquidity zone. Don’t jump in prematurely.
3. Confirm Reversal Signals:
• Look for sharp rejections (e.g., long wicks, bullish engulfing candles at liquidity zones).
• Monitor volume spikes during sweeps, indicating institutional absorption.
4. Enter Decisively:
• Place your trades at points of maximum opportunity, such as fair value gaps or after key liquidity sweeps.
5. Scale Out Profits:
• Sharks don’t aim for perfection; they secure partial profits at key levels to reduce risk while letting the trade run.
Having a systematic plan ensures you stay ahead of the sharks rather than swimming with the retail herd.
6. Learn to Manipulate, Not React
The ultimate step in cloning the shark’s mindset is to stop reacting to market moves and start anticipating and manipulating. When you think like a shark, you can exploit retail psychology yourself:
• Set your traps. For example, create buy stops above a swing high, expecting the sharks to target them. Use this liquidity sweep to enter short positions at a better price.
• Fade the retail herd. When retail sentiment is overwhelmingly bullish, look for signs of exhaustion. Sharks thrive by going against the crowd, and so should you.
• Use volume and wicks to confirm. Sharks leave footprints in the form of long wicks and volume spikes at key levels. Follow these signs to align yourself with their moves.
By shifting from a reactive mindset to a manipulative one, you’ll begin to profit from the same strategies that have made market makers the dominant players.
7. Think Long-Term Like a Shark
Sharks don’t care about short-term noise. They think in terms of long-term accumulation and distribution. To truly win big, adopt the same mindset:
• Focus on probabilities, not guarantees. Every trade should align with your broader strategy, not just immediate gains.
• Study market cycles. Sharks understand the ebb and flow of the market, including how liquidity is built and swept during different phases.
• Refine your edge. Sharks have a defined edge, whether it’s liquidity sweeps, volume profiles, or institutional order flow. Focus on mastering one strategy rather than chasing multiple techniques.
By thinking long-term, you position yourself to ride the waves sharks create rather than getting swept away by them.
8. Be a Predator, Not Prey
The ultimate goal is to stop thinking like a retail trader and start acting like a predator. Sharks don’t just survive—they dominate. To win big:
• Detach from retail thinking. Stop relying on static levels, basic indicators, or emotional decision-making. These are the tools of the prey.
• Align with institutional flow. Study where the sharks are hunting and follow their lead.
• Stay disciplined. Sharks win because they act strategically, not impulsively.
When you master these principles, you’ll no longer fear the sharks. You’ll swim with them—and profit alongside the most powerful players in the market.
By adopting the psychology, tactics, and execution of the sharks, you not only protect yourself from retail traps but also learn to exploit the same inefficiencies they target. The markets are a battlefield, and only those who think like predators will win.
Introduction: The Shark’s Perspective
In the financial markets, market makers—often referred to as “sharks”—thrive by hunting retail traders. They exploit predictable behaviors, weak stop-loss placements, and emotional decision-making. These predators aren’t here to play fair; their sole aim is to capitalize on retail inefficiencies and manipulate price to accumulate positions at premium levels.
To succeed as a trader, you need to think like a shark. Understand their mindset, anticipate their moves, and position yourself to ride their wave, not get swallowed by it.
The Psychology of the Sharks
Sharks are calculated, patient, and ruthless. Their attitude and behavior are governed by a deep understanding of the market and a complete disregard for retail traders’ emotions. Here’s how they operate:
1. Predatory Patience:
Sharks don’t rush into trades; they wait for retail traders to overcommit at predictable levels. They know that retail traders often react emotionally, and they exploit this to the fullest.
2. Manipulative Attitude:
Sharks think several moves ahead, intentionally creating patterns that retail traders are taught to trust. This could mean crafting a convincing breakout only to reverse it or engineering false retests that suck traders in.
3. Zero-Sum Mentality:
For sharks, every stop-loss hit is a gain. They understand that retail losses create the liquidity they need to execute their larger institutional trades. They approach the market as a battlefield, where only the strongest survive.
4. Calm Amid Chaos:
Unlike retail traders who panic during sudden moves, sharks thrive in volatility. They deliberately create chaos by pushing price aggressively into liquidity zones, knowing that confusion breeds mistakes.
The Psychology of Retail Traders
Retail traders, by contrast, are ruled by emotions—fear, greed, and hope. This makes them easy prey for sharks. Let’s break down their typical behaviors:
1. Overconfidence in Patterns:
Retail traders rely heavily on textbook patterns and indicators. They see support and resistance levels as invincible and fail to consider that sharks intentionally manipulate these levels.
2. Fear of Missing Out (FOMO):
Retail traders often chase price movements, especially during breakouts. Sharks exploit this by pushing price just beyond key levels to trigger FOMO-driven entries, only to reverse and trap them.
3. Stop-Loss Reliance:
Retail traders place stops at obvious levels, such as Fibonacci retracements, swing highs/lows, or psychological round numbers. Sharks hunt these stops relentlessly.
4. Emotional Reactions:
• Fear: Retail traders panic when price breaks below their support level, leading to emotional exits at the worst possible moments.
• Greed: They overleverage positions, trying to “win big,” making them even more vulnerable to traps.
• Hope: Retailers hold onto losing positions, hoping for a reversal, even as sharks continue to target their liquidity.
The Market Maker Blueprint
Market makers follow a simple but ruthless strategy:
1. Identify Liquidity Pools: Retail stop-loss clusters become the primary target. These are zones where retail traders place stops based on key support and resistance levels, Fibonacci retracements, or psychological price points.
2. Create False Moves: Sharks engineer fake breakouts or breakdowns to force retail traders into bad positions, triggering their stops and fueling liquidity.
3. Exploit Imbalances: Once liquidity is swept, market makers reverse the price toward institutional targets, leaving retail traders trapped on the wrong side.
In XAU/USD, the current setup provides a textbook opportunity to understand and capitalize on these manipulations. Let’s break it down.
Comprehensive Technical Analysis: The Shark’s Hunting Grounds
1. Liquidity Zones
Market makers target liquidity above and below the current price:
• Above the Price:
• 2,664.26 (100% Fibonacci): Retail breakout traders place buy stops here, expecting continuation. Sharks will trigger these orders to trap overleveraged buyers.
• 2,670.36 (127.2% Extension): A classic level where late buyers FOMO into the market, providing the perfect trap.
• Below the Price:
• 2,647.12 (23.6% Fibonacci): Retail longs cluster stops here, viewing it as strong support.
• 2,641.83 (0% Fibonacci): A fair value gap (FVG) containing untapped liquidity. Sharks drive price here to absorb retail stops and establish institutional positions.
2. Volume Profile
• Point of Control (POC) at 2,653.04: Retail traders treat this as a pivot level. Sharks exploit this expectation, faking retests to entice traders into bad entries before sweeping liquidity.
• Volume Void Below 2,647.00: This low-volume zone represents inefficiency—a magnet for market makers to drive price downward, triggering stops en route to deeper liquidity.
3. Moving Averages as Traps
• EMA 21 (~2,650.40): Retail traders often use short-term EMAs as dynamic support. Sharks leverage this by creating quick dips below to trigger stops, only to reclaim the level later.
• SMA 50 (~2,655.69): Acting as medium-term equilibrium, this zone aligns with the 61.8% Fibonacci retracement, providing a magnet for bullish continuation post-reversal.
4. Candlestick Psychology
The recent price action reveals:
• Long Wicks at Key Levels: These reflect retail hesitation and institutional order absorption. Sharks are laying the groundwork for the next liquidity sweep.
5. Harmonic Patterns and Wave Structure
• Wave 4 Correction: Sharks are preparing a liquidity grab during the Wave 4 dip, targeting the FVG zone (2,641.83–2,645.00). Wave 5 targets lie at the 127.2% Fibonacci extension (2,670.36), where breakout buyers will likely get trapped.
The Market Maker’s Phases of Attack
Phase 1: The Bearish Liquidity Grab (Retail Trap Breakdown)
The shark’s first move is to create panic among retail buyers by driving the price below key support levels. This triggers stop-loss orders and tempts breakout sellers into shorts.
Execution Steps:
1. Target Stop Zones:
• Below 2,647.12 (23.6% Fibonacci): Prime stop-loss zone for retail longs.
• Below 2,645.00: A deeper cluster of stops aligning with prior session lows.
2. Sweep Liquidity into the FVG Zone:
• Zone: 2,641.83–2,645.00: Sharks absorb liquidity here, preparing to reverse the trend.
Phase 2: The Bullish Reversal (Trap Sellers and Squeeze)
After absorbing liquidity, sharks reverse the price upward, trapping retail shorts.
Phase 3: Trap Breakout Buyers (Swing High Reversal)
The final move is to exploit retail FOMO as breakout buyers pile in above 2,664.26. Sharks reverse price aggressively, driving it back into equilibrium.
Final Thoughts: Outsmarting the Sharks and Becoming One
Trading success isn’t just about surviving the sharks; it’s about learning to think and act like them. Sharks dominate because they combine patience, strategy, and ruthless execution. They see beyond what retail traders see, act without emotion, and leverage market psychology to their advantage. To win big, you must stop being the prey and start evolving into a predator.
Here’s how you can clone the shark’s mindset and tactics to transform your trading:
1. Adopt a Predator’s Patience
Sharks don’t trade for the sake of trading—they wait. They analyze the market and act only when the conditions are perfect. As a trader:
• Stop chasing every move. Focus on high-probability setups and let the liquidity sweeps play out fully before entering a trade.
• Plan your attack zones. Identify key liquidity pools, such as stop-loss clusters and untested fair value gaps (FVGs). These zones are where the real opportunities lie.
Remember, patience is a weapon. Retail traders panic or rush to enter trades, but sharks understand that timing is everything.
2. Think in Liquidity, Not Levels
Retail traders fixate on static support and resistance levels. Sharks, on the other hand, think in terms of liquidity. Liquidity pools are the fuel for market moves, and identifying them gives you the edge.
• Look for zones, not lines. Liquidity often lies just beyond obvious levels like Fibonacci retracements or swing highs/lows.
• Expect false breakouts and breakdowns. Sharks deliberately push price beyond these levels to grab stops and fake out retail traders. Use this knowledge to position yourself for the reversal.
By focusing on where liquidity is concentrated, you align yourself with institutional flow and avoid the traps set for retail traders.
3. Master the Art of Manipulation
To truly think like a shark, you must understand how they manipulate retail traders. Sharks create illusions—fake breakouts, false trends, and deceptive wicks—to lure retail traders into predictable mistakes.
Here’s how you can leverage this knowledge:
• Watch for exhaustion. Sharks often leave clues, such as long wicks at key levels, signaling that they are absorbing liquidity and preparing for a reversal.
• Anticipate traps. If a breakout looks “too clean” or happens on low volume, it’s probably a fake. Position yourself to take advantage of the reversal instead of chasing the move.
By understanding how sharks manipulate, you can use their tricks to your advantage.
4. Develop Emotional Immunity
Retail traders are emotional creatures. Fear of loss, greed for gains, and hope for reversals are their undoing. Sharks thrive on this weakness, creating chaotic conditions to force emotional decisions. To clone the shark’s psychology:
• Detach from outcomes. A single trade doesn’t define your success. Focus on executing your strategy flawlessly.
• Use logic, not emotion. Before entering a trade, ask yourself: “Am I acting on fear or greed, or is this move supported by data and analysis?”
• Embrace losses. Sharks don’t fear losing because they know the bigger picture. A calculated loss is part of the process of winning big.
When you control your emotions, you stop reacting like prey and start thinking like a predator.
5. Build a Ruthless Execution Plan
Sharks don’t hesitate. They act decisively once the conditions align. To trade like a shark, you need a clear execution plan:
1. Identify Liquidity Zones: Know where retail stops are clustered above and below the price.
2. Wait for the Sweep: Let the market move into the liquidity zone. Don’t jump in prematurely.
3. Confirm Reversal Signals:
• Look for sharp rejections (e.g., long wicks, bullish engulfing candles at liquidity zones).
• Monitor volume spikes during sweeps, indicating institutional absorption.
4. Enter Decisively:
• Place your trades at points of maximum opportunity, such as fair value gaps or after key liquidity sweeps.
5. Scale Out Profits:
• Sharks don’t aim for perfection; they secure partial profits at key levels to reduce risk while letting the trade run.
Having a systematic plan ensures you stay ahead of the sharks rather than swimming with the retail herd.
6. Learn to Manipulate, Not React
The ultimate step in cloning the shark’s mindset is to stop reacting to market moves and start anticipating and manipulating. When you think like a shark, you can exploit retail psychology yourself:
• Set your traps. For example, create buy stops above a swing high, expecting the sharks to target them. Use this liquidity sweep to enter short positions at a better price.
• Fade the retail herd. When retail sentiment is overwhelmingly bullish, look for signs of exhaustion. Sharks thrive by going against the crowd, and so should you.
• Use volume and wicks to confirm. Sharks leave footprints in the form of long wicks and volume spikes at key levels. Follow these signs to align yourself with their moves.
By shifting from a reactive mindset to a manipulative one, you’ll begin to profit from the same strategies that have made market makers the dominant players.
7. Think Long-Term Like a Shark
Sharks don’t care about short-term noise. They think in terms of long-term accumulation and distribution. To truly win big, adopt the same mindset:
• Focus on probabilities, not guarantees. Every trade should align with your broader strategy, not just immediate gains.
• Study market cycles. Sharks understand the ebb and flow of the market, including how liquidity is built and swept during different phases.
• Refine your edge. Sharks have a defined edge, whether it’s liquidity sweeps, volume profiles, or institutional order flow. Focus on mastering one strategy rather than chasing multiple techniques.
By thinking long-term, you position yourself to ride the waves sharks create rather than getting swept away by them.
8. Be a Predator, Not Prey
The ultimate goal is to stop thinking like a retail trader and start acting like a predator. Sharks don’t just survive—they dominate. To win big:
• Detach from retail thinking. Stop relying on static levels, basic indicators, or emotional decision-making. These are the tools of the prey.
• Align with institutional flow. Study where the sharks are hunting and follow their lead.
• Stay disciplined. Sharks win because they act strategically, not impulsively.
When you master these principles, you’ll no longer fear the sharks. You’ll swim with them—and profit alongside the most powerful players in the market.
By adopting the psychology, tactics, and execution of the sharks, you not only protect yourself from retail traps but also learn to exploit the same inefficiencies they target. The markets are a battlefield, and only those who think like predators will win.
Mohamed
THE Ichimoku MAN on the Nile
#traders4traders
you are welcome to join my Telegram channel, Ichimokuonthenile.
for GOLD follow this link: t.me/GOLDontheNILE
youtube youtube.com/@ICHIMOKUontheNILE
THE Ichimoku MAN on the Nile
#traders4traders
you are welcome to join my Telegram channel, Ichimokuonthenile.
for GOLD follow this link: t.me/GOLDontheNILE
youtube youtube.com/@ICHIMOKUontheNILE
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Mohamed
THE Ichimoku MAN on the Nile
#traders4traders
you are welcome to join my Telegram channel, Ichimokuonthenile.
for GOLD follow this link: t.me/GOLDontheNILE
youtube youtube.com/@ICHIMOKUontheNILE
THE Ichimoku MAN on the Nile
#traders4traders
you are welcome to join my Telegram channel, Ichimokuonthenile.
for GOLD follow this link: t.me/GOLDontheNILE
youtube youtube.com/@ICHIMOKUontheNILE
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.