How do big corporations buy discreetly before the big move comes?

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In this article, I would attempt to explain how the market moves and the possible explanation behind each move

 

Black line:

The market starts with a bull run and prices goes higher and higher day by day. As we are nearing the top of the bullish move, the media would be filled with news and articles touting the financial instrument to go much higher than the current price. Even the most hardcore haters would change their tune saying they were wrong to bash the financial instrument.

 

Red Line:

Without any signs of cracking, sell would come out of nowhere catching everyone off guard. Media would be saying this is a one-off event which the financial instrument would recover soon. A small buy push would happen after the initial fall. More news from media would appear saying the market is recovering. Then without any signs the second move down would happen and suddenly we just realized that this market is not going to recover but a bear trend is established. The masses start to panic. Media would be stuffed with news about the impending bubble burst, how this financial instrument is going to go to abyss. At this point the big boys would accumulate the financial instrument discreetly. Why the discretion? Imagine if you have a lot of funds and you want to buy at the lowest price possible, you cannot just buy with all the funds you have. By doing so would push the price higher. I would dollar cost as the prices move lower and lower. I would be buying till I have used up most of my funds. Price would just move sideways in a ranging manner during the last accumulation phrases. The sideways phase may last a prolong period so that the masses would lose faith and interest in the financial instrument.

 

Green Line:

The big boys would then buy with conviction at the final stage. The conviction is important to attract smart traders or funds into the buy thus pushing prices higher. By this time the masses would still be in denial as they have lost faith and those who still believe think the move they are seeing is a fake move up.

 

Hopefully with my simple explanation you understand how price move now. Do your own research and only apply this on financial instruments which have very strong fundamentals. Know what you are trading and soon you will be making cool profits.