ok, so how exactly is this done? can you or anyone illustrate this "manipulation" on a chart?
What is happening inside the blue circle? Who is in control here, what are they doing, and why?
.....or one can take the opposite side to benefit.....if this "manipulation" can be seen.....agree?
But there is more than this is it not?
Affirmative to both.
SO what exactly is the purpose of manipulation?.....so you think that we (retail clients) are important in this process of manipulation?
So are we saying that manipulation is there to get the retail clients?.....surely not?.....this does not make sense!.....we are nothing!
Am not sure if we even understand what manipulation is yet or even if it exist and where it is before we even speculate why it is there and for what purpose?
You noted that retail clients have stops but if we could see manipulation in the charts then we could get out of the way.....could we not?.....now, if we did that, does that mean there will be no more manipulation thereafter?
Maybe retail traders are important, but if the bulk of them learned to see manipulation and get out of the way then perhaps the nature of this particular manipulation would change. It is more likely however that where skill is involved there will continue to be strong and weak players, and the manipulations will continue as long as it is worthwhile to do so.
To prove whether it is there in the first place, surely one must have a theory where the market is likely to do something but for manipulation, else how would the difference in the price be spotted without anything to compare? Only when we are aware of something can we look to ascertain its cause. Manipulation is often speculated about by those least equipped* to logically deduce whether it exists and whether it can be used to improve the odds of the individual trader.
How many people see manipulation where I have shown the blue circle? To make a call that entities deliberately intervened with a purpose (manipulation) here, one would have a "norm" in mind where the market "typically" progresses higher from here, and an understanding of what could be achieved by temporarily diverting it from the likely destination. Without knowing this, why would it occur to consider manipulation here? Or perhaps manipulation is a red herring, and what occurred during and immediately after the blue circle was simply a consequence of several independent decisions taken by individuals without a collusive or manipulative purpose? How would you know, and how does knowing benefit your trading?
* - I would take an educated guess that manipulation occurs to aspiring traders after the fact, when they are in need of a reason for their losses or failure to make sufficient progress. It appeals to various forms of human weakness to shift responsibility to an overbearing outside factor (e.g. powerful entrenched interests in the financial markets in conspiracy against the little guy) over which the individual has no control. Are losses the fault of manipulations or the fault of the individual for predictably playing into the hands of the manipulator?
Perhaps if the novice begun with a thorough study of the environment and the predictable mistakes made by most others due to common human weaknesses he would be better prepared to develop his own advantage without becoming part of the food chain.
