The 'Whale' scenario (Manipulator)
1. Sharp price drop to 0.3850 to create an illusion of weakness.
2. Continuation of the drop to 0.3815, taking out the nearest stop-losses of long traders.
3. Finishing off the crowd with a drop to 0.3780, causing panic and short liquidations.
4. Sharp buyback – the price soars back to 0.3900, leaving 'trapped' traders in shorts.
5. Profit taking – selling at 0.3950, creating a false bullish impulse.
6. Position liquidation and drop to 0.3880 to gather liquidity before a new move.
7. The final trick – sharp rise to 0.3930–0.4000, luring new long traders before a new cycle of manipulations.
The 'Crowd' scenario (Retail traders)
1. The crowd sees a slight rise and enters long at 0.3879.
2. Rejoices at the rise to 0.3895, increases positions.
3. On the breakout at 0.3920, more retail traders enter, hoping for growth.
4. Sharp retracement to 0.3905 takes out part of the long traders by stops.
5. The price drops to 0.3880, causing panic and the exit of the majority.
6. The crowd starts shorting on the drop to 0.3825, thinking the trend is down.
7. The whale sharply pumps the price up, liquidating their shorts.
8. The crowd again enters long at 0.3900–0.3925, while the whale dumps their positions on them.
Conclusion:
The whale acts cunningly: creates false movements, takes out stops, and then plays out the opposite scenario.
The crowd loses: reacts too predictably to signals, enters long or short where the whale has already set traps.
So be careful and don't fall into the traps of whales.
