Running discussion on SP, page-5670

Yep. That sounds like the patterns I have observed.

Everything tells me that ordinary folks like me are playing against algorithms that use near instantaneous trading decisions to 'manage' what actually transacts to suit their own aims. It's all about the fractional / differential values in trades that cost those players nothing to implement. They can buy and sell a handful of shares just to affect the "current price and history". This selects which trades get to buy or sell by bracketing one bid by others that beat it to the deal. It is reminiscent of the old adage of the dealer sometimes putting his finger on the roulette wheel. It doesn't always work, but on balance . . .

It would appear to me to be a way of hoovering up small trades up to a certain volume. It can result in a bit of battling between bigger players but It can be swamped by larger volumes, and that is what defeats it. When there is a significant movement in the market value of the stock as a whole, e.g. the announcement of a deal being struck by the company, the SP moves as the actual market determines. But for the low volume trickle of hour by hour trades it is a predatory process. Ordinary folks who pay a fee to trade anything are the prey for this practice.

The only way to avoid it is not to be swayed by the fickleness of unsubstantiated micro-sentiments. In other words, if your info source is unduly based on what you read on HC etc, be prepared to be snapped up by the bigger fish because they are watching out for you to flinch at what the pumpers and dumpers pour into the commentary. You have to ask yourself: "Why are all these would-be influencers always on here telling us this stuff? What do they gain if we accept what they say? It's surely not just about likes?"

DYOR. To understand the tides you often have to ignore most of the waves.