Disliked{quote} All spikes have different causes. Yearly, Quarterly, Monthly book balancing, Triple Witching, Quadruple Witching, news driven spikes like NFP or FOMC, the occasional fat finger, large carry trade offload, or news algo SNAFU can cause intraday spikes, but don't have longer term effects on the higher time frames. What typically causes the effect you're looking at is investor sentiment. Most trends end with investor exuberance which is what causes the burst up at the end. It's actually a signal that larger traders watch for and sell into. It's...Ignored
Can we forcast this low liquidity or not, if we cant then probably at some point we will also be victims of this pump&dump phenomena, if we can then how?
Retailers could be any trader who manages his own money, obviously an institution has their trades planned out and would not jump into every single opportunity which arises.Only the average Joe who sits in front of his PC trying to make quick buck by trading this, gets excited, emotions, and such suck into this, regardless of his account size being 100€ or 1.000.000 €, because retailers come in all shapes and sizes, and lack of planning is a common attribute to most of them.
"There's a sucker born every minute" - P.T. Barnum