I was surprised to see how one of 'my' stocks ended up with a
HUGE pad on the closing hour at 0.062
What are pads you ask?
I can give you a thorough explanation on what it really is. But to save you from all the gibberish:
Pads or Padding, in a nutshell.. is used to either hold/prevent a breakdown/breakout or delay the inevitable.
What padding looks like in terms of "holding" or "preventing"
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| Image Taken from "Ironclad" |
A castle wall.
Only a few would dare go up against a wall.
Would you? People put their lives err..
i mean money.. on the line for this wall.
And this is Padding in terms of "delaying the inevitable"
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| Image Taken From "300" |
This would be the "illusion"
A classic trap where the big bad padder actually SELLS his shares
a few or several flucs higher from his huge pad. After doing the deed,
he pulls out his 'army' leaving those who just bought in great despair.
So when you think you see a pad.. you better think twice.
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ReplyDeleteHi sir how do you identify a trap-pad against an actual demand?
ReplyDeleteBesides the Size of bidding is the number of people bidding. Generally an actual demand has a high number of people bidding with small sizes than small numbers or just 1 to 2 people with large sizes of bid. More people means, the crowd is in.
DeleteGreat post, you have pointed out some excellent points, I as well believe this is a very superb website.
ReplyDeleteBetomania
just a newbie here. further explanation about this post? Im totally out of it.
ReplyDeleteWhat I learned from this post is that someone out there is manipulating the movement of the price. There are only 9 traders who are holding the 61 Million shares. It seems like that they agreed to sell on that price so the market price will follow to the price that they wanted. We know that the market price follows the price sentiments of the volume and price. Meaning if there is a great volume in that certain price, it will be the basis of the market as to what price the stock should be. Notice also that the said bid appears on the last minute of trading day.
ReplyDelete