โ
๐ณ Trap No. 5
๐คVOLUME MANIPULATION (WASH TRADING)
โ๐ด What is it? ๐ด
This is a method used by manipulators to artificially inflate trading volume. The goal is simple: to deceive market participants by creating the illusion of huge interest in the asset.
โThis is done through thousands of buy and sell transactions of the same instrument to oneself. The owner of the asset does not change, but the volume counter on the exchange 'spikes'.
๐ด Why is this needed? ๐ด
To instill in the crowd that large money has entered the asset and it's time to buy.
๐ฉ How to recognize a trap in the moment:
The glass is empty, but the tape is flying: Huge lots pass through the tape of deals (Time & Sales), but the price in the glass remains the same.
Identical numbers: Robots often rotate identical volumes (for example, exactly 1.5 BTC or 5555 tokens) through equal micro-intervals.
Zero result: The volume increased by 5-10 times, but the price did not move by even a percent.
๐ What do we see on the chart?
As a result of such 'stirring', often form:
๐ด Dojis ๐ด
๐ด Shooting stars ๐ด
๐ด Hammers ๐ด
The manipulator does not move the quotes but simply keeps the opening and closing price at the same level while 'drawing' the necessary millions in the Volume column. โ๏ธ
๐ก TIP: If you see an abnormal volume at a 'dead' price โ do not rush to jump on the wagon. Wait for the actual breakout of the price from this range and confirmation of the movement!
๐ค Part 6 in the next post.
Subscribe and get comfortable.
@TradeNet_3000_ai
In all networks