2. Triggering Breakouts and Breakdowns
Manipulators push prices above resistance levels or below support levels to make the chart appear as if a breakout or breakdown has occurred.
This tricks technical traders into entering positions based on these false signals.
3. Forming Technical Patterns
They execute trades to mimic common patterns, such as head-and-shoulders, double bottoms, or cup-and-handle formations, to bait traders into buying or selling.
4. Candlestick Manipulation
Manipulators control the open, high, low, and close of a stock during specific time frames to create misleading candlestick patterns.
Example: Making a stock close at a daily high to form a "bullish engulfing" candlestick, which signals strength to chart-watchers.
5. Volume Manipulation
Adding fake volume at key price points to make a chart appear more active or to confirm a false breakout.
6. End-of-Day Price Manipulation
Manipulators drive the price up or down near the close of the market to influence the daily candlestick or line chart, making the stock appear stronger or weaker than it really is.
Why Painting the Charts Works
Many traders rely on technical analysis to make decisions, interpreting patterns, trends, and volume as signs of where the stock is heading. Manipulators exploit this by creating fake patterns or signals on the charts to lure traders into buying or selling at manipulated prices.
By painting the charts, manipulators set a trap for traders who act on these signals, allowing the manipulators to profit when the price inevitably reverses. For example:
In a bull trap, manipulators push the price up to form a breakout, prompting traders to buy, only to sell off their shares and cause the price to fall.
In a bear trap, they drive the price down to trigger panic selling, then buy the shares at lower prices before the price rebounds.
How to Spot Chart Manipulation
1. Sudden and Unusual Price Movements: Be wary of sharp price changes without news or other catalysts.
2. Volume Mismatches: If a breakout or trend doesn’t have corresponding high volume, it might be fake.
Sam Vandersey : most YouTube influencers get paid from companies and exchanges is what I heard
This_Guy OP Sam Vandersey : Some do yes others get paid other ways and others invest early in the stock they promote and get followers to invest after and basically use them as liquidity to exit after the stock rises.