In the world of trading, market manipulation is a subtle yet powerful tactic used by large participants operating with passive limit orders.
In the world of trading, market manipulation is a subtle yet powerful tactic used by large participants operating with passive limit orders.
In the world of Forex trading, market manipulation is a subtle yet powerful tactic used by large participants operating with passive limit orders. Unlike aggressive traders who use market orders that directly impact price and volume, these players aim to execute large positions without shifting the market significantly, keeping their intentions hidden. But with advanced tools like the Volume Terminal and cy75 indicator, these manipulations become more visible to informed traders.
Take the August 5, 2022, EUR/USD scenario: buyers appeared active, but a passive seller absorbed all buying pressure throughout the day. When the market made one final attempt to push above the Daily Fair Price (DFP) around noon and failed, the passive seller turned aggressive, causing the market to collapse.
In another August 2022 setup, cy75 showed strong buying interest (green candles), yet the price continued to decline. The passive seller kept moving Sell Limits downwards, soaking up the aggressive buyers—a classic sign of buyer absorption. The result? A sharp move down after trapping the bulls.
A third August 2022 case involved a stop hunt. Early buyers gained control around 3:00 AM, but at the daily lows, a passive buy order absorbed the selling from triggered stop-losses (seen in cy75 red candles). Then, the market quickly reversed and surged upward—clear evidence of a strategic stop hunt and manipulation to fill long positions cheaply.
Finally, the July EUR/USD example showcases a long game of manipulation. Early green cy75 candles below the DFP pointed to buyer activity, but the price slid downward due to passive seller absorption. As short sellers jumped in, the market reversed pre-London open, taking out their stops and fulfilling the passive seller’s short positions. The result? A rapid market drop once the manipulation phase ended.
Understanding these patterns helps traders recognize traps, avoid fakeouts, and follow the real smart money direction.
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