Institute pump and dump Explain

I have analysis this pattern by myself and i like to share with you .

Institute sell there stocks to retail and exit there position.
This thing happens in 3 stage .
Below share in detail-


# 1st Leg – Big Institutional Buying

Price breaks out sharply above previous resistance zone.

Huge volume spike clear sign of institutional buying.

Candle structure long bullish candles, often with wide range.


Psychology:

Institutions step in aggressively — they don’t hide accumulation here.

Breakout attracts early smart participants or some retail momentum traders.


#Stage 2: Partial Profit Booking + Retail Entry

After the first upmove, institutions book a small portion of profits.

This causes a minor correction or sideways movement — which you’ve marked as “small correction.”

Then, volume pops up again — but this time driven by retail traders who see the price breakout or recent rally and jump in late.

Institutions use this liquidity from retail buying to offload more of their holdings (distribution phase).

Hence the second leg’s rise is often less strong internally — despite visible volume.


#Stage 3: Retail Trap & Sharp Decline

Once institutions have sold enough to retail, they stop supporting the price.

This results in a sharp fall — large red candles, pointed out.( Here we know fake buying by institute and this is just trap)

Retail traders, who entered during the 2nd leg thinking it’s another rally, now get trapped.

Volume still appears high, but now it’s mostly panic selling or stop-loss triggers.

This confirms institutional distribution is complete and the next cycle may start again from lower levels.



This post may help you understand fake institute buying, but we identify this in 3rd stage .

I have purchased This stock at 2nd leg and trapped exit at 3rd stage.
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