LNG 0.00% 4.3¢ liquefied natural gas limited

Given anyone can draw such basic charts, what's to stop an...

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    Given anyone can draw such basic charts, what's to stop an institutional size investor from playing the market based upon available volume setup the chart to look exactly how traders expect it to look in order to trigger them to sell into the institutional buyer who's looking for the best average buy price they can get? Not saying this is what's happening here but if you're an institutional buyer with enough money to drive volume, why not play with trading signals in order to effect the buy price you can achieve? All you need to do is ensure it doesn't break resistance and bang most of the traders sell out because the down trend is confirmed vs the uptrend is shown to continue? How much would it cost - $500k to $1m worth of shares at a loss of 10% say - to put things back into a $2-3 trading range vs a $3-4 trading range. That's only 500k-1m shares you'd need to be looking to buy for you you to be ahead. We know this is exactly one of the games the HFT's play on smaller increments by front runner orders in the market, why not do the same sort of thing by guessing where to front run the market?
    Last edited by sivart: 28/01/15
 
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