Institutions Triggering Breakouts
One pattern that I have seen happen across many stocks right now is institutions triggering breakouts as exit liquidity.
It is clear from the action over the past few days that stocks are being sold off by institutions. In order to do this they are using retail traders’ pattern recognition against them.
Here’s what I mean:
See how on my cursor they triggered NVDA to close over previous resistance to lure retail into buying and then they dumped the stock and brought it down to lows of the day?
This is happening time and time again - not falling victim to this will save you a lot of money in the current environment.
You can see it here on the SMCI daily chart as well. You got a day of straight buying, and then they trigger you with a higher high, only to bring the stock back down.
You can see it very clearly on the 5m chart:
The market is difficult to trade right now. To be profitable, I outline how I am trading the current environment in the video below: