Saturday, October 1, 2011

manipulations at gap openings


when the overnight conditions are bullish
everyone expects gap up opening.
the operators sense these prevailing sentiments
and oblige
......by jacking up the price further!!!
vice-cersa for down side.
a gap opening is always overstretched.
thereafter, they start the distribution
or play games to further extend the accumulation.

--

how fast the gap gets filled
indicates what games the operators are upto-

1. filling of gap up during bull phase or gap down during bear phase
= means operators are not supporting buying after gulping down profit at the gap opening
to will start accumulating more and more at more attractive price without making noise.

2. filling of gap up during bear phase or gap down during bull phase
= means operators are distributing after encashing the temporary euphoria.

3. sustaining of gap up during bull phase and gap down during bear phase
= means operators are scaring the retail traders, enticing them to take reversal positions and thus accumulating before resuming the trend.

4. sustaining of gap down during bull phase and sustaining of gap up during bear phase
= means operators are trapping the retail traders by misleading them that the reaspective phase is over and thus accumulating more at cheap price by extending the euphoria.

No comments: