How Institutions Trick the Crowd: 7 Market Manipulation Tactics Explained
🔑1. Fake Breakouts (Stop Hunt)
They push the price above key resistance or below support to trigger stop-losses or attract breakout traders — then reverse the move.
🔑 2. Pump & Dump with News
They release or ride hype/news to pump prices, draw in retail, and then offload their positions at the top.
🔑 3. Spoofing Orders
Placing huge fake buy/sell orders to create false demand or supply, then canceling them once retail reacts.
🔑 4. Low Liquidity Moves
During off-hours or low volume periods, they make large moves to create panic or euphoria, causing retail to react emotionally.
🔑 5. Indecision Zones (Chop & Trap)
They range the price in tight zones, creating confusion and indecision, while they accumulate or distribute quietly.
🔑 6. Sentiment Reversal
Using social media, influencers, or even coordinated FUD/FOMO to shift retail sentiment rapidly in their favor.
🔑 7. Short Squeezes & Long Liquidations
Triggering mass liquidations to cause violent moves, increasing volatility and profit potential — while retail gets wiped out.
💡 Tip for Retail Traders:
Follow structure, volume, and key levels — not noise or emotion.
Trade like a sniper, not a soldier in the crowd.
