Bitcoin Forum

Where did this originate? Who are they? Anyone know anything?

It's a term I made up to describe the tactics some one or group uses to maximize returns using loss aversion psychology.  there has been a pattern that has repeated five times now in the last fourteen months:

1) crash/bounce
2) stutter step
3) spike/short squeeze
4) second bounce at much higher level


thennnn....crash, bounce, rinse and repeat.

We are getting close to the short squeeze.

Hey, why write something original when you can just quote yourself :D From the wall thread...

There is a pattern that repeats and the pattern is not random; therefor someone is causing it, someone with the ability to move a multi-billion dollar market.

^ Agreed. But in my opinion, "someone" is a group, and they're not guided by some coordinated goal to move the market in this or that direction. What we see is more likely an emergent phenomenon, arising from the combination of a (pretty understandable, currently) desire of profit taking at the obvious resistances (target based trading), followed by panicky momentum to the downside (emotional traders and investors "losing hope"), followed by some real buying pressure at "low prices" (i.e. new money getting in) plus the initial traders covering their shorts at the sign of a significant capitulation bottom.

It's what the 2011 capitulation *should* have looked like, imo. That weird almost uninterrupted fall from $32 to $2 was before a sufficiently large amount of capital was in the hands of traders that knew what they're doing (EDIT: also, before large scale margin trading was possible).

I don't see a strategy here, only cause and effect, plus emotion driven overshoot. But, yes, I admit: I can't prove my hypothesis either.

You lost me there. "If a pattern is not random it means a small group is responsible for it"?
The market forces are causing it. Not a bunch of chinamen dudes or something.

I didn't say a "small" group. I have no idea how many there are. Hell, in a sense because I am front-running them, you could say I'm a FPR, only I'm really more of a three punch raider because I will not participate in the long squeeze.

EDIT: I also didn't say they are Chinese, although they do have accounts on the Chinese exchanges. I suspect they are not, judging by the bull and bear FUD from dummy accounts that comes in waves with the moves.

Such investigator!

Keep the good work on and in a few years you will not only have made up the term of an ABC correction, no!, you will make up the terms of all Elliot Waves!  ::)