Trader (Kardec Trader) describes a tactic for shorting low-float, heavily manipulated stocks that experience repeated ‘up’ halts. The speaker identifies a ‘multi upside halt’ pattern—stocks halted up several times in a row on five-minute candles—and recommends initiating shorts after about four to five consecutive halts, expecting a mean reversion.
This one here is a multi upside halt pattern. So I like shorting these after about four to five halts in a row. So this one halted up 1, 2, 3, 4, 5 times a row. These are five minute candles. You have these low float stocks that are highly manipulated. And these are very easy to kind of shoot them into halts with all low volume. So when they are rigging these, they'll just shoot instantly into halts. And you can notice the bottoming wicks. So they are testing the halt bends. It opens here, but it wicks down and then shoots up into a halt. So this is trapping short sellers because short sellers will see the dip on the resume and slam the lows and then they get flipped inside out and shot up into another uphaul. So this is a common manipulation tactic that they use. And by the fourth or fifth hall, people are at max pain. In general, usually four to five halts in a row is the max that these things can do before some kind of mean reversion. If you see this pattern where it's really thin, it's just shooting into halts. After testing the lows, I just wait. I don't try to guess the top on these and just jump in. I will do a starter at about four to five halts because that's likely the top backed by the data. By the data.
