Controlling OTC prices.
It's done by something called wash trades or matched orders or buy/sell swapping. Using this technique you can control direction in any days action on the OTC. M&Ms love seeing this, because it causes increased volume fees. They will also help runs and reversals by chasing flash orders, which are placed way above or below ask/bid, by trading groups.
The trading group plans stall, continuation, and reversals. By trading with each other, at designated times or price levels. They buy or sell the bid/ask stack on que.
Flash orders are placed and removed within a minute, to signal to M&Ms which direction the trading group wants. There are other tricks also. Most have heard of 100, 200, 500, 800, 900 order size signals. That is mainly used by M&Ms when they need to reload, to close a large order or want to arbitrage a business profit, for the broker/dealer during a day. But the basics to control is swap trades for continuation direction to increased emotion, and volume. Plus signal continuation or reversal to and by M&Ms for help and joint attack on retail.
Day traders usually take over control after big guys slack off some. Thats when you see the daily chart stall and channel for a while. They create the timing chart pattern, until the next big guy continuation. Banking 2 profits a day, second one half the first. Also do as the big guys do, when continuations happens. They know the game also. M&Ms; they aid direction change and support volume.
To get much more detailed you would need to compare T&S results with price action. T&S (Time & Sales level II) I use to do this years ago at this board It is easy to do but complicated to explain. I think most of the charts back then are no longer available, but the posts still are there. Maybe find some 2004/5 or 6.
So as you can see, while the typical unknowing retail message board poster is all involved in calling the CEO by his first name and knowing the most about what he's trying to infer in smoke and mirrows PR. The big guy, pro traders, day traders and M&Ms are controling stock price action and emotion, working together to fleece the herd again.
The biggest myth around is M&Ms cause the action. When it's BIG GUYS. VCs #1 then pro trading groups during climbs and day trades during channel stalls and after the run is over. The M&Ms mostly support this, but do time to time arbitrage some profits, on their inventory rebalancing, on top of trade fees.
All this can only happen because of the 2 tier trading system on the OTC. Which allows M&Ms, which are broker/dealers mostly, to see order flow, before it moves to the electronic trade system. That first look advantage, allow them to decide to close orders from their inventory and arbitrage profits. Or increase build in the positive or negative direction, seen in the level2. To assist big guys with their wants and needs.
The typical retail trader, on the OTC, does NOT have a chance against all this. Unless they are aware of the OTC game and have learned how to do as the big guys do!
