Artificial Institutional Selloff Indicator via /r/wallstreetbets #stocks #wallstreetbets #investing
Artificial Institutional Selloff Indicator
Sometimes institutional investors intentionally drop a stock price to buy more shares at a cheaper price. Fuck you right? Anyways, there's some key indicators that show when this is occurring, and when you should diamond hand. 1. A huge volume red candle at open – Scare retail before they pop addies and make their coffee. 2. No bad news / Insignificant bad news / Macro fear, preceeding the drop – They want you to panic. 3. Huge blocks on the sell side – Large selling pressure appears to dwarf buying pressure and drives the price down. 4. Bullish daily option flow – if the calls outweigh puts by more than 2x on a huge daily drop, someone's trying to fuck you. 5. Huge green candles on the absolute lows on the day – This is the institutes buying up the volume on the low end. 6. Stop losses getting obliterated (Not an indicator perse, but a resultant factor) – Huge selling triggers stop losses, selling from those SL orders drops the price further, triggering more SL orders. The retail volume could likely be AFK traders not actively monitoring their positions.
TLDR: To see if a dump if legitimate; watch L2 books, volume candles, and the put/call ratio. Diamond hands brothers 💎
Submitted November 10, 2020 at 06:50PM by LibertarianAgent
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