Hi Guys, I wonder if I can get your thoughts on why this type of move happens regularly with stocks. Where there is a bullish move, then it reverses for a few bars and then takes off again. I have the theory that all of this is deliberate by banks and Hedge funds. They spend a bit of time buying up shares, then dump a whole lot to reverse price and buy up call options and shares. The options probably pay for the share purchases.
Hi Guys, I wonder if I can get your thoughts on why this type of move happens regularly with stocks. Where there is a bullish move, then it reverses for a few bars and then takes off again. I have the theory that all of this is deliberate by banks and Hedge funds. They spend a bit of time buying up shares, then dump a whole lot to reverse price and buy up call options and shares. The options probably pay for the share purchases.