Today in the Live Trade Room, there was a very nice potential long setup taking place. Sellers had just failed to rotate lower and now buyers are so strong they aren’t even allowing bears to form a bar.

After I entered in to the long, the market did pop initially near my target and then flushed down to 1 tick from my stop. In market manipulation moves like this, they attempt to flush the market lower and get traders to panic exit in to industrial traders buy orders. They are simply looking to fill more orders under the radar masking the volume as a stop run.

This flush will have certainly caught a lot of traders out with breakeven stops or even panic exits. This is a common tactic to fill more orders before a move! In understanding the manipulation that just took place, it allowed us to not only gain a huge amount of confidence in the position, but also allowed the ability to get a good handful more ticks out of the trade too — icing on the cake!