How are markets manipulated?
From a Technical Analysis view, the following 50 year old quote from R.W. Schabacker, the father of modern technical analysis, applies in showing how the public can be manipulated. This is also known as chart painting. “Insiders and professionals are by no means unaware of the growing public interest and education in chart theories and patterns. In normal trading there are certainly not enough chart traders to make it worthwhile for the professionals to play against them instead of against the general public, but we have learned that the professionals must play against someone in order to make money. It is quite conceivable, therefore, that the insiders might take a crack at chart traders now and then by manipulating false patterns in their campaign stocks, with the knowledge that, by arranging certain chart pictures, they could draw in a certain amount of buying or selling, as they chose, with a view to strengthening their own position.
