๐ฃ๐๐" Whale Games: Shake Out the Little Fish Before the Feast ๐ฃ๐๐"
meaning .....
Big whales push price to scare small fish ๐ฑ โ take their orders ๐ฝ โ then swim the price the other way ๐.
First, big players push the price in one direction (to grab liquidity) โ this tricks traders into thinking the trend has started.
Then, after triggering stop-losses and collecting orders, they reverse the price in the opposite direction โ the real move.
Observe the image below to understand this market psychology ,I have taken btc 4hr chart for example
Let's analyse it to have clear picture as most of us don't understand the basic concept of liquidity
What happened if If big players grab buy-side liquidity (below recent lows) โฌ๏ธ:
They drop the price first to hit long tradersโ stop-losses ๐ฑ (which creates sell orders they can buy).
Once theyโve bought enough, they flip the market up โฌ๏ธ โ price goes higher ๐.
If they grab sell-side liquidity (above recent highs) โฌ๏ธ:
They push price up to hit short tradersโ stop-losses ๐ต (which creates buy orders they can sell into).
After selling big positions, they reverse it down โฌ๏ธ โ price falls ๐.
Final words
๐ก Liquidity grabs are often fake moves one way before the real move happens the other way.
Meaning ....First, big players push the price in one direction (to grab liquidity) โ this tricks traders into thinking the trend has started.