We all know accumulation as a theory is pretty much observable when the market has been in a range.
However seeing hindsight makes things very easy to comment on for eg. accumulation took place in that time period.
Can anyone shed light on how exactly the accumulation of shares takes place and how is a range formed as a result of it? And then why is manipulation done after that only?
as far as i know…big boys don’t just buy a huge chunk all at once. instead, they go for gradual buying (buying small amounts over time) or spread their trades across multiple brokers (using different brokers so it’s harder to spot what they’re up to) or use advanced trading algos (like fancy tools that helps them time their trades perfectly), or maybe leverage dark pools for anonymity (like private exchanges where they can trade without everyone noticing).
so this sneaky buying keeps the stock price in a certain range by balancing out supply and demand, setting up clear support and resistance levels.
now once they’ve got their fill, they might start price manipulation to push the stock price up, and this could be anything from spreading some good news to making some aggressive buys to get things moving. The idea is to create enough buzz and demand so they can sell off their shares at higher prices, making a nice profit. so in short, it’s all about moving carefully and smartly to stay under the radar while maximizing gains.
and hey, this is also a reason why newbies shouldn’t get too depressed if they’re stuck in a higher price position . life isn’t always fair, and this is just the reality of the market game.