|
Title: Goomboo's Hammer (misleading title) Post by: ScrapOfCat on April 25, 2013, 04:05:32 PM (Sorry Goomboo, not blaming this technique on you, just that you were where I learned of it ::) )
in this post https://bitcointalk.org/index.php?topic=60501.msg736626#msg736626 Goomboo describes a trading technique called "The Hammer" thusly: The Hammer (Long) 1. Big trader posts large volume on the ask side 2. Individuals see the ask and try and get in front of him by selling/shorting/lowering their offers 3. He is simultaneously buying at the bid from the small guys 4. As soon as selling volume dries up, he pulls his ask and enters long, causing a jump in prices 5. He sells to the people who buy behind him, scalping a profit How to Play the Hammer (Long) 1. Watch the volume from the small traders that are trying to trade in front of him 2. When the volume dries up and he pulls his ask - enter long 3. If he doesn't follow soon with a large trade, exit your trade at a scratch or loss To me, that kind of sounds like what we are looking at here: http://i34.tinypic.com/16a2jxv.jpg Other than someone with a lot of money putting a stop to it, what eventually causes this sort of thing to end? Title: Re: Goomboo's Hammer (misleading title) Post by: arepo on April 26, 2013, 11:44:48 PM Other than someone with a lot of money putting a stop to it, what eventually causes this sort of thing to end? that's all it takes. profiting off of a regularity in the market closes the profit margin for others, similarly to arbitrage. Title: Re: Goomboo's Hammer (misleading title) Post by: ruski on April 26, 2013, 11:47:07 PM Great strategy. ;D
|
