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So you just watched the Market run several hundred pips. There is a very real chance you hit your stop in the moments leading up to this move taking place. Even if you were unable to get the ideal entry into this trade, maybe you were able to get a few trades out of the bottom/top before the market died back down.

If that were the case, you had just stumbled into the latter parts of the Profit Release stage, or the payout cycle. This phase replicates business practices of top casinos throughout the world.

The final installment in this series will focus on the Profit Release stage of the Market Maker’s three stage process of Manipulation in the Markets. “Point of Origination graphic from Smart Money Course Virtual Classroom.” Anyone that has heard of trading has likely also heard that it is somewhat similar to gambling, or like going to a Casino. While this is true, it may not be in the way that many would assume. There are two pieces to any Casino; The patrons, and those who actually run the Casino. It would be incredibly foolish to think the massive Casinos in Las Vegas operate on mere chance of whether or not patrons of their business could clean them out any given night. Any thinking person realizes that while some do win at the tables, the majority of the time, the House comes out on top. This is the exact structure in which the Forex Market is run as well.

Similar to when someone “hits it big” in a Casino, the Profit Release phase functions much the same for Market Makers. This phase is generally easy to see, easy to trade, and most importantly, very seldom happens. This is when the Retail Trader is allowed to make a profit in the Market, keeping them coming back. Identifying a Profit Release, even in hindsight, can be beneficial to moving forward in many ways. While Content Traders shun any pattern like signals, there is one visual that accurately depicts a Profit Release. In the event price completely breaks clear of a price range (a range price has stayed in for several months, usually several hundred PIPs wide) and then begins a new Accumulation, you can label the push to this new price as the Profit Release.

Because of what a Profit Release is; when Retail Traders are allowed to make a profit, the best course of action is to look for a pullback and get in! This is supposed to be the easiest trade, by design, meaning do not over-think these phases too hard. Like any other trade the kill switch for this would be taking your profit upon the market going back into an accumulation phase.

If the market is in Accumulation about 75% of the time, is being manipulated 20%, then that leaves about 5% of time left for a Profit Release to take place. While this phase is rarely taking place, that is no reason not to study it. If you are able to make decent forecasts of profit targets, these can be some of your most profitable days.

As a closing thought; learn to read accumulation and manipulation tactics, and you will nearly always find the clarity needed to make good judgements in the Market, leading right into the Profit Release. Remember, this is the Market Maker’s Business; not ours.

Thank you for reading the “Identifying Market Manipulation” Series!

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-Shane Guth

Director of Smart Money Course


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