Manipulation

Numbers & Data

JTRADER
O F F I C I A L M E N TO R O F S M A L LC A P R O O M & B O O K M A P
 Confidence is in the Numbers

The most manipulated stocks:

- have an agenda

- are micro float stocks so they have a float below 3-5M

- are ETB (easy to borrow on many brokers) so there will be more short participation

- have float rotated once or more in premarket, these are called “crowded stocks”
Edge To Trade:
data and stats
tool

- Market cap

- Float

- Institutional ownership

- SSR

- News

- History of fading

- Financials

- Avg % spike

- Avg HOD time

Bullish Trend
Expectation

• High volume

• Higher lows/higher highs

• Above 20ema

• Above Jlines

• Straight trend
Possible Market
Outcome

2 focal sections:

1.
The green section is the
long opportunity; fueled
by an early bear trap
where short sellers are
trapped below VWAP and
the breakdown of pm
support.

2. The red section is a fail of

the pm highs and Jlines
which initiates a
downtrend.
Premarket Levels
$WISA
On small float stocks you
always need to pay attention
to the levels of supply and
demand.

Manipulation can exist on

high volume but also on low
volume areas.
1. Jlines

2. VWAP

3. PM support and
resistance
Key Levels:
½ and whole $
numbers $SAVA

• Look on charts where we have

a fail of VWAP or Jlines

• Confirmed unwind will be a

non- reclaim of the previous
high level following with a set of
lower highs /lower lows

• A reclaim with high volume or

an increase of volume tends to
be an indication for a major run
Manipulation
+ Dilution
(Part 1)
Manipulation: reasons and how manipulation can be
displayed

• The company is in need of cash.

• Generally, companies with small market cap have low to zero

revenue and a high cash burning ratio.

• They put out a press release to pump the stock and attract
buyers.

• They are looking to raise money through an offering.

Types 1. Active shelf (company/bankers decide when to raise)

- under the baby shelf it can raise up to 1/3 float value in

(Part 2) 12 months

- S3/F3
2. Pending S1 offering

- can raise the amount stated in S-1

3. ATM
- can dump at any time
4. Warrants (investors and shareholders decide to exercise/convert)
- warrants are priced and have different expiration days then
shelf
5. MM

- Market makers are also to consider in this manipulation game.

They are the dilution and they are looking to squeeze early those in
short positions or trap longs when they need to accumulate or bring home
gains. Often this manipulation is hard to see in the market. They can
be seen on Order Flow through Bookmap while on a level 2 or through
the price action you will find it much harder to spot them.
1st type: bear trap
at the open,
under/over setup

Focus on 3 main aspects:

• Premarket support

• Premarket high

• HOD

These levels come in play as

tactical magnets for
reversals. Look at price
action when we approach
these points and look at
tape/order flow.
Time and
Parameters of 1st
type of bear trap $DPW

• Open

• Bear trap in the first 45

minutes

• High % IO or multi-float
rotation stock or micro-
float & high volume

• SSR + high volume

• 2nd day plays that open

weak and reclaim the
premarket level are ideally
gap up
Example $SPRT

• Here we see the usual

setup: opens weak, traps
short sellers, then rips.

• Above $9 big hands start

to dump on easy/small
retailers for the coming
back to see on the midday
pop (end of chart).
 2nd type: $WAFU
bear trap
mid-morning
after a slow fader
• $WAFU isa
SmallCap/microfloat as
it’s below 2M. It has a
history of being a fader on
day 1 with an avg gap% at
93 and an avg HOD
timeat 9:54pm.

• Stats will always give you

an edge but until you don’t
know how to recognize
volume, order flow and
price action your stats
won’t be useful.
2nd type $GRNQ

• Institutionals, market
makers, big players,
insiders, and firms they all
partecipate with an
agenda.

• When the stock will have

more then 1 big player
then we create a “crowded”
environment. You will
often see a shift in the
supply/demand and big
blocks passing on the tape
from one side to another.
3rd type: bear
trap afternoon,
$WIMI
after a morning
consolidation
Small cap:

• Micro-float

• Catalyst

• No overhead resistance

• Manipulation and lots of algos

during day

• High volume

• 2 reclaims of VWAP

• 3 fake breakouts

• 1 last breakout of the morning

consolidation
3rd type: levels
+ price action
Keep always a clean chart with few
indicators on higher time frames in order
to see the consolidation. Also, check
Bookmap to see if there are support or
resistance levels and if at those levels
you see soaking or stuffing. Lateral
phases are what big hands use to trap
and therefore I never trade these zones.

The best area to trap retailers will be

based on an evaluation of over 1000
charts:

1) Support

2) Resistance

3) Consolidation areas

4) VWAP
3rd type: analyze
the peaks in
volume
$CREX
• This pattern of mid-day
consolidation is generally on
low volume. You will find a
strong volume at the open
usually a spike/stuff candle
(impulse) then a weak
behavior lasting 1-2 hours
with low volume.

• The micro-float stocks are

often showing this price
action when there is an
agenda and they want to
pump the stock to day 2 or 3.

• If the volume collected during

the consolidation is high, then
they will look to go for day 2,
trapping as much shorts as
possible.
Tip: on lateral
phases and the
edge of the pitcher
$WIMI
Think of a stock like a
pitcher:

1. You will pour water in and

if you have a hole at the
bottom then water will
flush and leave the pitcher
empty (supply).

2. If you have an intact

bottom instead and you
continue to verse water in,
then it will soon spill out
(demand).
 3rd type
$SINT

• Small Float

• Small market cap

• No Cash

• Low % instiutional own.

• Net Income
4th type: Pump &
Dumps
When a stock needs cash and $VVPR
has dilution it will take
advantage of press releases
to pump the stock. They will
get heavy collectors, retailers
and crowd chasers in and
then dump on their offering
to raise capital.
• S1
• Atm
• Warrants
• S3
• Convertible notes
4th type: P&D
with para move
$INDP
5th type: bull
trap at open $APDN

This example shows how big

hands with dilution tend to
have a clear picture of what
they need to do.

Agenda:
1) Create an SSR enviroment
or put out a press release or
both
2) Use pre-market algos to
prop the stock up with
spoofing orders or by
buying small amounts on
dips
3) Wait for the perfect timing
when the support and
liquidity is created to then
dump on the small hands
 5th type
$HHT

An example of a stock
triggering a breakout. $HHT
broke out the gate at $1.20
due to having supply from
big hands who were ready to
dump on retailers, chat
pumpers, etc.
6th type: bull
trap/bear trap
+ distribution $ISPC/$ASTR

• A distribution pattern is
generally a wedge or
descending triangle and it
will trigger more then 1
fake breakout or
breakdown.
• Big hands use these levels
to trigger their traps and
then reverse immediately
the price action
momentum.
7th type:
Overextended
plays + regular $AMC
price action
• On uptrend patterns we
need to see a set of higher
lows.

• Daily candles have to be

always with a higher low
which equals the strength
of the trend.

• If you use an intraday

chart such as a 5/15
minute, you will see the
sequence of higher lows
7th type:

Another example on $AMC with an overextended play

and with the 3 phases.