ok i have a theory. people learn technical analysis and stuff then guys with money they make patterns appear in the charts by buying and selling... like they know if they push the price up it will maek a pattern.... so they make the pattern then others buy it and meanwhile the original dude sells to the guys taking the signal....... is this how people make money???????????????? also if i have a friend working at a hedge funds and i make a deal with him he will tell me wat stocks he is buying the night before so i will go to prop and leverage huge on that stocks??? then we split 50/50 later???? is that illegal?????????? thx.
1) No. Nobody is influential enough to create a specific chart "pattern". 2) It may not be illegal but it could jeopardize your friend's employability if it were discovered.
i don't believe it is illegal but his firm would fire him in a split second and probably come at him with some sort of lawsuit for breaking confidentiality agreements. now that i think about it this may be insider trading. we need a compliance guy to explain if it is or isn't.
if it's a single stock, you can easily create a pattern yourself. you need a lot of money to trade for that and the stock should not be extremely heavily traded, like apple or washington mutual. Medium to low volume, you can create a pattern and hope others will buy into it.
How about you forget trading and just tell me which stocks your friend is buying. Will split 50/25/25. Deal? But yeah I make money recognizing these big orders. It would just make it easier knowing beforehand.
There is one thing I have always wondered about trading ES intraday. Many times during the day you will see a huge buy or sell order on the DOM 3 or 4 tics over or under the market for just a few seconds. It always makes me think the big boys are signaling a move.
Isn't the Quantum Fund estimated to be 10% of the Nasdaq's daily volume? I'm sure they're on the other exchanges as well. I'm not saying this for sure is happening and there are definitely times when even if they are trying to get something going they wouldn't be able to, but I don't see how we can dismiss the idea so easily. The Dow is only made up of 30 stocks, and has a lot of push and pull in the overall market. If you wanted to move mountains in the market and had a ton of money and a ton of smarts working for you, I think you could do it. It would just take moving those 30 stocks in the right direction. Also, you wouldn't have to create an entire pattern. Just get a fire lit then let it go.
I think of it more like a quick liquidity test. Testing where the bottom or the top is going to be for the next quick move. Trade through all the little orders for a second to see where the big money is parked. I could be way off, but that's what makes sense to me.