A Deeper Look into what causes the "Bart Pattern" we keep seeing everyday.

[atrocityx]

I thought this article could be useful to those who keep hearing people in forums/telegram/media outlets using the term "Bart Pattern" in trading or know about it but not really sure what is causing it.  I was thinking of writing an article about this myself and try to explain what it means and what is going on, but I found this article in research of starting my own and I think this explains it far better than I ever could.  It's vital information to understanding how maybe your training as a retail trader is working against you and how you playing it safe on trades maybe making you whale food.

https://medium.com/@getgoodcrew/best-guide-to-trading-barts-you-will-ever-see-c4fb0db24ff

[1713941993]

1713941993

[1713941993]

1713941993

[1713941993]

1713941993

[1713941993]

1713941993

[butka]

Thanks man. This is one hell of an article. I've never really thought beyond the usual trading tutorials. But if you are an institutional trader, you have to use tricks to fool the masses. Will be watching closely for such patterns. Can you give an example of exchanges where these big players usually manipulate behind the scene? Are the smaller exchanges safer? Do they need a certain level of liquidity or they just use most of them. 

[atrocityx]

Thanks man. This is one hell of an article. I've never really thought beyond the usual trading tutorials. But if you are an institutional trader, you have to use tricks to fool the masses. Will be watching closely for such patterns. Can you give an example of exchanges where these big players usually manipulate behind the scene? Are the smaller exchanges safer? Do they need a certain level of liquidity or they just use most of them.  

 

It's definitely more noticeable on Bitfinex and Bitmex..they primarily are counter trading the masses by using people buying or selling a breakout or breakdown as free liquidity to go long or sell into a short on margin doing the opposite of what people think will happen.  It's basically using all training as we know it as what to do in "safe trading" to work against us... oh you think we're going to 4k if we break below 6k? Well well well we'll just buy all of your stop losses triggers to go long on margin, etc.

Small traders not taking positions on long/short on margin are probably at no risk since the games they are playing won't liquidate you.  We are starting to see a turn in the market but the same bart candles are primarily responsible for most of the rise in price... and will likely continue until more volume comes into the market. (if and when BTC gets an ETF).   Smaller exchanges are not safer because arbitrage bots will follow the larger margin exchanges pretty quickly.. the only difference is in the volume it looks less manipulated because it takes a minute or two for the non-margin exchanges to catch up (Volume split across 3 5 min candles in comparison to huge spikes on 3 1min candles). The only liquidity they really need is volume spikes of people buying or selling on TA to quickly get into positions.. (when you're selling you need buyers or when you're buying you need sellers, hence why you countertrade).

[butka]

I see. So the smaller exchanges are not immune to these patterns as well. While it is easy to spot the Bart Patterns in hindsight, the main problem is how to predict their creation in advance. Then you can even take advantage of them.

And the other question related to this one is how to protect yourself from being manipulated in this way. If I understood the article correctly, the solution could be not to set stop losses triggers (or rather not to set them at obvious targets) and actively watch the price action.

For example, if you have a stop loss at an obvious target, say, below a support line, when the support is being broken, big traders will buy your stop loss and then go long. And big traders may even deliberately drive the market down to collect from this liquidity pool, even if their intention is to go long.

Now if you didn't have stops triggers at obvious targets, you could be safer. You could see that the support is being broken, but soon afterwards the opposite trend will appear and you will be fine.

[atrocityx]

I see. So the smaller exchanges are not immune to these patterns as well. While it is easy to spot the Bart Patterns in hindsight, the main problem is how to predict their creation in advance. Then you can even take advantage of them.

And the other question related to this one is how to protect yourself from being manipulated in this way. If I understood the article correctly, the solution could be not to set stop losses triggers (or rather not to set them at obvious targets) and actively watch the price action.

For example, if you have a stop loss at an obvious target, say, below a support line, when the support is being broken, big traders will buy your stop loss and then go long. And big traders may even deliberately drive the market down to collect from this liquidity pool, even if their intention is to go long.

Now if you didn't have stops triggers at obvious targets, you could be safer. You could see that the support is being broken, but soon afterwards the opposite trend will appear and you will be fine.

Yeah, I think regardless of what you do, you may not be immune since with such low liquidity the market moves by the hands of people who do this sort of manipulation.  and even trying to follow them can be dangerous and very tricky..   The realization that the normal market has lost control for the time being at least allows us to put some logic to what is going on, if trading on margin not to follow your typical stop patterns, and just in general know that that these patterns isn't caused by a massive selloff that bitcoin is going down forever I think is what most people can take out of it.  I personally think its too tricky like you said to try to follow the patterns with any amounts of huge success, but the easiest way to see if you could develop a skill for this is use testnet on BitMex to see how often you can guess right based off of the wicks in consolidation from last bart candle... even if you got your average up to 60-70% it may would be tough to actually riskk that kind of money following them, but could be an interesting test.