i just found out about wykcoff's method and smart money, i'm so pissed
i've heard about wykcoff before, but i recently stumbled upon it again and looked into in detail and as it relates to forex trading
and what i found out lead me down a rabbit hole that ultimately made me super pissed
first off, smart money are crooks
these are institutions that manipulate the markets in a systematic way, in order to fuck people out of their money repeatedly, like a well oiled machine
they do this through wykcoff's method
wkycoff's method is basically 4 phases: accumulation, uptrend, distribution, downtrend
smart money follows this formula to the letter each and every time they engage in the markets
this is because smart money is made up of institutions, and institutions make up 90% of the trading volume in forex
basically, institutions can do whatever the fuck they want, at any time
they have such high volume, they can literally cause candlesticks to move at will on the price charts
they use this ability to go through the 4 phases of wkycoff's method
they start by accumulating a bunch of the stock when prices are in a downtrend
dumb money, basically every trader on reddit, sees that prices are trending down, so they end up opening sell positions
smart money absorbs all the positions from dumb money
this causes a narrow and boring trading range that lasts DAYS
there is no continuation of the downtrend or trend reversal, it's just a ranging market
but during this time, smart money is accumulating. they are adding onto their stock and getting all of the supply in what looks like a quiet market!
they go even further than that
they use algorithms, and high frequency trading, to periodically push price below the trading range. this causes a bunch of stop loss orders to trigger, at which point smart money immediately buys again, accumulating more
or quite simply, smart money can place MASSIVE sell orders at the bottom of the trading range. sell orders so big that once they get triggered, price literally tumbles down on the price chart
which again triggers a bunch of stop loss orders to trigger. and then again, immediately at this time, smart money buys back all the asset they sold, and they buy back all the new supply that just entered the market due to the stop loss orders
smart money is basically doing liquidity grabs during this accumulation phase to continue their accumulation
finally, once they are done accumulating everything, and they are sure that no one has anymore stock available to sell.. smart money then moves the market upward!
dumb money thought the downtrend would continue, but no, that's not the case
smart money has taken the price upward
once the uptrend has finished, smart money then either decides to reaccumulate or move to the distribution phase..
distribution is the same as accumulation, but in reverse
after distribution, comes the downtrend, and after that, smart money may decide to redistribute, by selling to dumb money all over again
once accumulation or distribution is over, smart money has to start the whole process again if they decide to reaccumulate or redistribute, of getting dumb money to feed them so they can build up their position
this is how smart money manipulates dumb money.. they go through these 4 phases, over and over again
dumb money has no idea they are being played.. they have no knowledge as to what is happening, they just know that they are losing
they see price is going down so they sell, but they are selling to smart money who is accumulating all stock..
smart money can afford to buy everything, smart money can decide what direction they want price to go, and they can make it happen no matter what. because they have the money to do it.. it just takes them time to finally accumulate all the stock before they decide to make their move
smart money moves the market, dumb money has no idea how or why they keep losing
imagine someone just getting owned in a competition over and over, they have no idea why they are losing each time
no one tells them why and they can't see why
so they keep trying again and again, and they just keep losing
that is what smart money is doing to dumb money
it's fucking wild, how blissfully unaware dumb money is
i've seen people on reddit saying they've been trading and losing for years, like 5+ years they've been trading. and still they are losing money..
they are literally dumb money that is spending their life being manipulated by smart money...
this is some dystopian type shit that is going on here
holy fuck. this is crazy