most of the time its not occuring at all, its just people...

most of the time its not occuring at all, its just people justifying a broader sell off.... AVZ anyone. However, generally the way it works is they will have a huge buy order in at a lower price and drive the sellers towards it. For example, I may have 150K to buy into a stock that is current 1.5c... I put a buy order for 100K in at 1c and then buy 50k at 1.5c... then I have a few options....
- I could put a massive sell order in and keep selling into the price until the a panic starts and people look to lock in profits or minimise their loss. Driving the price lower closer to my 1c mark.
- I could put a massive sell order in at 1.4 and stall any chance of a run... eventually momentum will be lost or impatience will kick in and people will jump over you to sell at 1.3c... then you take your 50K and do it again at 1.3c, forcing people who want to sell to 1.2c.. rinse and repeat til your order is hit.
- I could drip feed into the sells, sapping momentum... as soon as something is linewiped I refill it, eventually sentiment turns and people looking for quick wins will sell at a loss to try their luck elsewhere... the negative sentiment erodes the price and fills my position.

In most cases it cost very little to the "game player" as they either hold stock or sell at a slight loss, but their ultimate goal is to take a big position on the cheap and wait for sentiment to turn.....

then they flip the script and sell into volume when positive news arrives.

wild west.