What impact does market manipulation have on the technical analysis of cryptocurrency trading?

» Technical Aspects
  • Market manipulation can distort technical indicators, leading to misleading signals for entry or exit points.
  • Artificially induced volatility from manipulation may result in atypical chart patterns, challenging the prediction accuracy of technical analysis.
  • Manipulation schemes like pump and dump can cause sudden price spikes or crashes, undermining the reliability of historical data for future analysis.

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What impact does market manipulation have on the technical analysis of cryptocurrency trading?

Hey, so I've been thinking about how market manipulation plays into the whole technical analysis game in crypto trading. You know how TA relies on chart patterns and price movements to forecast where things might be heading, but then you've got whales and other big players potentially messing with the market. Doesn't this screw with the indicators and stuff? Like, can you really trust the patterns you're seeing if there's a chance they're artificially created? How do you guys deal with that when making trading decisions?

Totally get where you're coming from with the whole manipulation concern. The thing is, yeah, manipulation can throw a wrench in the works for TA. When big players are playing their games, they can create false signals that might lead you to think there's a breakout or a trend reversal happening when it's really just them messing around.

But here's the deal, instead of tossing TA out the window, what you might wanna do is take a step back and look at the larger trends. Manipulation usually can't sustain itself forever, right? So if you're looking at longer time frames, you might get a clearer picture that's less affected by the short-term manipulations.

Also, keeping an eye on the news and having a feel for the market sentiment can give you an edge. Sometimes when you hear rumors or news about potential manipulation, it's good to take that into account before you make your moves.

Anyway, curious to hear how others might adjust their strategies to account for these kinds of shenanigans in the market. What's your take on balancing TA with the reality of manipulation?

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