$PIPPIN 🔍 What is "Account Draining"? (In simple terms)
Simply understood:
Whales manipulate the price to go up and down within a narrow range to take money from early / impatient traders.
Not to go far, but to sweep orders.
⸻
🧠 How do they drain liquidity?
1️⃣ Slightly pull up → lure long • Price nudges up • No need to break the high • People see “breakout imminent” → go long • Stop-loss usually placed just below the small bottom
👉 Then: • Price gently reverses • Sweep long stop-losses • No need to sell aggressively
⸻
2️⃣ Push down slightly → lure short • Price drops lightly • People think “collapse” → go short • Stop-loss placed just above the small top
👉 Then: • Price bounces back • Sweep short stop-losses • Also no need to pull far
⸻
❓ Why does the price reverse before you enter a trade?
👉 It’s a liquidity drain signal.
If it’s a real trend: • Price should: • Move steadily • Volume increases • Few reversals
But here: • Moves a short distance • Reverses quickly • Doesn’t break important levels → The goal isn’t to continue, but to sweep new entrants.
⸻
📊 Recognizing liquidity drain signals (is very practical)
Just remember these 4 signs: 1. Price moves sideways within a narrow range for a long time 2. Long wicks on both ends of the candle 3. Volume gradually decreases 4. Fake breakout (touching a level then reversing immediately)
👉 Seeing 2–3 signs = liquidity drain in progress.
⸻
🧠 So what do smart traders do now?
👉 Standing aside is winning.
Only act when: • Price breaks a level and holds • Or breaks a level and doesn’t bounce back
⸻
A phrase to remember for a long time
Liquidity drain happens when the market doesn’t want to go anywhere, but wants to take money from impatient traders.
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$PIPPIN 🔍 What is "Account Draining"? (In simple terms)
Simply understood:
Whales manipulate the price to go up and down within a narrow range to take money from early / impatient traders.
Not to go far, but to sweep orders.
⸻
🧠 How do they drain liquidity?
1️⃣ Slightly pull up → lure long
• Price nudges up
• No need to break the high
• People see “breakout imminent” → go long
• Stop-loss usually placed just below the small bottom
👉 Then:
• Price gently reverses
• Sweep long stop-losses
• No need to sell aggressively
⸻
2️⃣ Push down slightly → lure short
• Price drops lightly
• People think “collapse” → go short
• Stop-loss placed just above the small top
👉 Then:
• Price bounces back
• Sweep short stop-losses
• Also no need to pull far
⸻
❓ Why does the price reverse before you enter a trade?
👉 It’s a liquidity drain signal.
If it’s a real trend:
• Price should:
• Move steadily
• Volume increases
• Few reversals
But here:
• Moves a short distance
• Reverses quickly
• Doesn’t break important levels
→ The goal isn’t to continue, but to sweep new entrants.
⸻
📊 Recognizing liquidity drain signals (is very practical)
Just remember these 4 signs:
1. Price moves sideways within a narrow range for a long time
2. Long wicks on both ends of the candle
3. Volume gradually decreases
4. Fake breakout (touching a level then reversing immediately)
👉 Seeing 2–3 signs = liquidity drain in progress.
⸻
🧠 So what do smart traders do now?
👉 Standing aside is winning.
Only act when:
• Price breaks a level and holds
• Or breaks a level and doesn’t bounce back
⸻
A phrase to remember for a long time
Liquidity drain happens when the market doesn’t want to go anywhere,
but wants to take money from impatient traders.