π΄ Identifying Fake Buy/sell Walls
π Either you do day trades or holds short term positions, you have to play smart.
π Understand that there are whales that have the ability to manipulate the markets.
π Whales are traders with huge volume that can put a buy or sell order at a certain position that is large enough which is unlikely to be filled.
π They can set the floor and ceiling for price movement.
π Fake walls can be identified by their tall appearance.
π They typically donβt have any sort of price runway and are usually placed as either the lowest sell order or highest buy order on the exchange.
π The reason we call these fake walls is because the trader that placed the order has the ability to remove it at any time and cause dramatic price movement.
π In other words, the sentiment is fake and there is no real market support.
π For fake buy walls, the whales place large, un-fillable orders that mimic high positive sentiment for the currency.
π Whether intentional or not, the walls give novice traders a sense of confidence that their position will hold and lead them to believe that the current price point is the new floor.
π As a result, buy orders start appearing above the wall.
π Nowhere to go but up, right? Wrong.
π The whale can pull the wall at any time and if the whaleβs order made up the bulk of buy orders, the price can shift in the opposite direction.
π Traders that bought above the whaleβs position can get burned and lose their capital.
π Same applies to fake sell walls.
π Whales can place large, un-fillable sell orders in an attempt to hold the price down and purchase the currency for cheap.
π Once they get their fill of coins, they can easily pull the order and cause the price to launch up if the sentiment was generally positive aside from their order.
π This is how the whale wins by tricking traders into selling cheap coins.
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