IX.22. Coin pumping is a dangerous phenomenon for a trader when working in short!

When working with cryptocurrencies, you should take into account a rather dangerous phenomenon – pumping, which can destroy your account during this process. Pumping differs from lumbago in that it is a purposeful pushing of the price up immediately by a significant amount – 25-600%. If at the same time you found yourself in a long position, then you are very lucky – you will get a huge profit.

To exclude the liquidation of a position, when during pumping you are in a short or trying to catch the maximum price at the top, we will give a detailed description of the pumping on the RSRUSDT futures, which was performed on 01.10.22. Note that unlike the lumbago, which can be considered a relatively random phenomenon, pumping is a business project for making a lot of money, side, performing pumping. So for the RSRUSDT futures, the pumping lasted from 14:00 to 21:00 continuously.

Fig. 22.1. The candle of the pumping of the RSRUSDT coin.

Daily timeframe. Let’s look at pumping in more detail on the hourly timeframe in Fig. 22.2.

Fig.22.2. Detailed scheme of pumping. Scheme 1. The beginning.

Fig.22.3. Fig.22.2. Detailed scheme of pumping. Scheme 2. The body of the pumping.

Fig.22.4. Detailed scheme of pumping. Scheme 3. Completion of pumping.

Fig.22.5. Detailed scheme of pumping. Scheme 4. Another example of pumping.

Fig.22.6. Detailed scheme of pumping. Scheme 5. Pumping on the RSR coin 07.06.22.

What should simple traders do with such a phenomenon?

1. Definitely, pumping is a big piece of luck for a trader who stood before it began in long. If the trader was in a short and not at the computer, then this is the death of his account, unless of course the volume of the application was significant.

2. It is extremely dangerous to climb into the body of the pumping with short applications, because the movements are very rapid and unpredictable.

3. Pumping is a real paradise for scalpers who can ride up and down for 8 hours, earning a lot of money as a result. If you do not have a lightning-fast reaction of scalper movements and you do not have the right software, in 99% of cases you will merge your account, trying to get into transactions during pumping. Just wait for it to finish and calmly come back later.

4. The movements of the pumping are very long for many hours, which torments the trader to nothing if he falls into the trap of pumping.

5. In order not to fall into the trap of pumping, if you are in a short, put a stop loss mark, at a considerable distance from your position, but in reasonable farts, for example, at 5%. This will save you from elimination if the pumping or lumbago occurred when you were not at the computer. 6. Pumping is easy money if you purposefully place a long order on a falling asset in advance, assuming to catch the pumping movement. But here it is necessary to place an application at a considerable distance from the current price, say 5% and periodically shift it if the price is slowly approaching it. Pumping always starts unexpectedly!

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