16d ago in General discussion
Dom's Philosophy on Red Vector Candles and Market Manipulation
In Dom’s view, red vector candles are key indicators of heavy selling pressure and often signal market manipulation by larger players, such as market makers. Dom believes that these vector candles typically occur when market makers are pushing prices down aggressively to trigger stop losses and create panic among retail traders. The goal is to accumulate long positions at the lowest possible price.
Once enough liquidity has been gathered from the retail traders' stop-losses and panic selling, the market makers reverse the price direction, trapping traders who sold in fear.
In the current 4-hour Solana (SOL/USDT) chart, the red vector candles indicate aggressive selling, which aligns with the idea that the market makers are manipulating the market to push prices lower and induce panic. However, this selling pressure is starting to slow, as indicated by the TRAMA (Trend Reversal Moving Average) tool, and the market is approaching the 50-day moving average, which often acts as a strong support level.
Dom’s Interpretation of the Chart:
- Red vector candles are present, signaling a phase of aggressive selling, likely caused by market makers to trap traders in short positions or panic sell-offs.
- Declining volume and interaction with the 50-day moving average suggest that the market could be reaching a support zone.
- Dom’s strategy at this point would be to watch closely for a potential trend reversal as the market makers may soon start driving prices back up, after having accumulated enough liquidity.
This aligns with Dom’s philosophy that after a period of manipulated selling pressure, the market will often reverse as those who pushed the price lower now look to profit from upward momentum.
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Dom's Philosophy on Red Vector Candles and Market Manipulation
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