Richard Wyckoff Understand How Whales Operate Market
This is not myth.
This is a real story.
This is a Malaysian stock that was manipulated by some people who is expert at manipulating stock market and others.
Operators and whales exist in every market, Nasdaq, OTC, Crypto, Penny Stocks, Global Stock Markets, etc.
Richard Wyckoff seems to understand the mechanism of how this works.
Let's look at Wyckoff has to say.
https://school.stockcharts.com/doku.php?id=market_analysis:the_wyckoff_method
Wyckoff proposed a heuristic device to help understand price movements in individual stocks and the market as a whole, which he dubbed the “Composite Man.”
“…all the fluctuations in the market and in all the various stocks should be studied as if they were the result of one man’s operations. Let us call him the Composite Man, who, in theory, sits behind the scenes and manipulates the stocks to your disadvantage if you do not understand the game as he plays it; and to your great profit if you do understand it.” (The Richard D. Wyckoff Course in Stock Market Science and Technique, section 9, p. 1-2)
Wyckoff advised retail traders to try to play the market game as the Composite Man played it. In fact, he even claimed that it doesn't matter if market moves “are real or artificial; that is, the result of actual buying and selling by the public and bona fide investors or artificial buying and selling by larger operators.” (The Richard D. Wyckoff Method of Trading and Investing in Stocks, section 9M, p. 2)
Based on his years of observations of the market activities of large operators, Wyckoff taught that:
The Composite Man carefully plans, executes and concludes his campaigns.
The Composite Man attracts the public to buy a stock in which he has already accumulated a sizeable line of shares by making many transactions involving a large number of shares, in effect advertising his stock by creating the appearance of a “broad market.”
One must study individual stock charts with the purpose of judging the behavior of the stock and the motives of those large operators who dominate it.
With study and practice, one can acquire the ability to interpret the motives behind the action that a chart portrays. Wyckoff and his associates believed that if one could understand the market behavior of the Composite Man, one could identify many trading and investment opportunities early enough to profit from them.
My Personal Notes:
- Accumulation occurs during bear market and when market is so boring where retail traders will sell all of their holdings.
- Whales or Composite Man will often test the market to see whether supply is still there or not.
- Whales or Composite Man needs to have strong reasons or strong "campaign" in order to distribute their holdings to the retails.
- Distribution often happens at super fast pace that anyone who has left the market will end up buying at much higher prices.
-When everyone is super bullish on the market, that's when the whales or composite man dumps their holdings and exit their market.
-Market will crash and proceed into the next phase of "accumulation" and the steps or history repeats.
-Another important things to know, Whales and Composite Man don't only control one asset/stock/crypto, sometimes they will control and manipulate a group of stocks/cryptos based on their theme and fundamentals.
-So, the whales will group stocks/cryptos into category. That's why sometimes you can see some stocks or cryptos moves together and have very strong correlation.
-In summary, I can say that everything in financial markets are controlled and manipulated by the big guy. How big is the guy depends on the liquidity and how big the market are.
- Dow and S&P 500 stocks are manipulated and controlled by the feds and big banks while the smaller penny stocks/crypto are mostly controlled by fund managers.
If you don't believe in this stuff, I don't have time to convince you, continue worshipping your Technical Analysis and your Elliot's Wave.
Regards.
This is a real story.
This is a Malaysian stock that was manipulated by some people who is expert at manipulating stock market and others.
Operators and whales exist in every market, Nasdaq, OTC, Crypto, Penny Stocks, Global Stock Markets, etc.
Richard Wyckoff seems to understand the mechanism of how this works.
Let's look at Wyckoff has to say.
https://school.stockcharts.com/doku.php?id=market_analysis:the_wyckoff_method
Wyckoff proposed a heuristic device to help understand price movements in individual stocks and the market as a whole, which he dubbed the “Composite Man.”
“…all the fluctuations in the market and in all the various stocks should be studied as if they were the result of one man’s operations. Let us call him the Composite Man, who, in theory, sits behind the scenes and manipulates the stocks to your disadvantage if you do not understand the game as he plays it; and to your great profit if you do understand it.” (The Richard D. Wyckoff Course in Stock Market Science and Technique, section 9, p. 1-2)
Wyckoff advised retail traders to try to play the market game as the Composite Man played it. In fact, he even claimed that it doesn't matter if market moves “are real or artificial; that is, the result of actual buying and selling by the public and bona fide investors or artificial buying and selling by larger operators.” (The Richard D. Wyckoff Method of Trading and Investing in Stocks, section 9M, p. 2)
Based on his years of observations of the market activities of large operators, Wyckoff taught that:
The Composite Man carefully plans, executes and concludes his campaigns.
The Composite Man attracts the public to buy a stock in which he has already accumulated a sizeable line of shares by making many transactions involving a large number of shares, in effect advertising his stock by creating the appearance of a “broad market.”
One must study individual stock charts with the purpose of judging the behavior of the stock and the motives of those large operators who dominate it.
With study and practice, one can acquire the ability to interpret the motives behind the action that a chart portrays. Wyckoff and his associates believed that if one could understand the market behavior of the Composite Man, one could identify many trading and investment opportunities early enough to profit from them.
My Personal Notes:
- Accumulation occurs during bear market and when market is so boring where retail traders will sell all of their holdings.
- Whales or Composite Man will often test the market to see whether supply is still there or not.
- Whales or Composite Man needs to have strong reasons or strong "campaign" in order to distribute their holdings to the retails.
- Distribution often happens at super fast pace that anyone who has left the market will end up buying at much higher prices.
-When everyone is super bullish on the market, that's when the whales or composite man dumps their holdings and exit their market.
-Market will crash and proceed into the next phase of "accumulation" and the steps or history repeats.
-Another important things to know, Whales and Composite Man don't only control one asset/stock/crypto, sometimes they will control and manipulate a group of stocks/cryptos based on their theme and fundamentals.
-So, the whales will group stocks/cryptos into category. That's why sometimes you can see some stocks or cryptos moves together and have very strong correlation.
-In summary, I can say that everything in financial markets are controlled and manipulated by the big guy. How big is the guy depends on the liquidity and how big the market are.
- Dow and S&P 500 stocks are manipulated and controlled by the feds and big banks while the smaller penny stocks/crypto are mostly controlled by fund managers.
If you don't believe in this stuff, I don't have time to convince you, continue worshipping your Technical Analysis and your Elliot's Wave.
Regards.