First down, then up, then down again and then up?? WTF? Did You See It? What Just Happened?
Whales, guys!
One of the biggest advantages of being a whale, is also their disadvantage. Yes, they can manipulate the market, but try to make 100% ROI on 50m USD in the Crypto Market!? Its obviously way easier to double your money if you start with 100 bucks.
Because the whale has a lot of money, they also need other traders (collectively) in the market with a lot of money, otherwise there will be no trade. That is not always easy - and its not at every price point people want to trade.
Example
We have more people trading at (liquidity) around 10,000 USD than 7128 USD.
And THAT, guys, is also why Whales always try to steer the market in a direction with high liquidity.
How A Whale Make Money
A part of a Whales strategy to make money is STOP HUNTING. They will try to liquidate you, or make you hit your Stop Loss because it will work as a sell or a buy, which will move the price in their desired direction.
How Whales Stop Hunt?
The most efficient way to liquidate people - both shorts and longs at the same time - is to make a sudden move first in one direction (through a key price point for instance 8,000 USD), and THEN back again through the same price point.
Why Is That?
The reason is simple - look at my chart. People usually place LONGS and SHORT around key support and resistance price points. And what about the Stop Loss? Yes, we typically put that on the opposite side of the resistance or support price point.
I have given some examples on how LONGS and SHORTS could be placed on either side of 8,000 USD, and also the stop losses on the opposite side. IF a WHALE manage to come from an uptrend and quickly go through 8k, and turn around and go back again through 8,000 USD he has NOW liquidated both the SHORTS and the LONGS.
Short Squeeze Party
The way our family made money on was just by swimming with the whales. I had figured out their plan. Due to the Disproportion between Shorts and Longs, the whales decided just buy up big, and make huge buy walls to induce the normal traders, and then just continue again and again, so we went all they way from 5k to 8,4k. Notice that this Stop Hunt ONLY killed Shorts.
Watch out for Key Levels as 8k
Here we have hugeliquidity, and the whales will try again and again to stop hunt espeically in this area, because its easy for them to make money on. You should ALWAYS be extra careful especially when you are trading on BitMEX or Bitfinex with leverage trading (margin trading).
Use it as an advantage
I have been studying psychology - I have been National Master in Chess and been a pro pokerplayer, so I have a pretty high interpersonal intelligence, which makes it pretty easy for me to figure out, what, why and how the Whales want to play, and what they are thinking.
When Im doing my TA, I always put the Whale mindset into my equation before I weigh all the information I have about the market, and then choose a direction!
PROOF
My Family knows this. Yesterday I gave them the signal, and told them that we would see a STOP HUNT down to kill the LONGS. And it happend. Today, I still believe we will go further down, and we might see another STOP HUNT.
Follow My Blue LINE to Understand how Whales operates.
D4
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