Estimated Manipulation Movement Signal [AlgoPoint]

Follow the Footprints of Whale Movements That Drive the Market

Overview
The market is not always driven by natural supply and demand. Large players—often called "whales" or institutions—can create artificial price movements to trigger stop-losses, induce panic or FOMO, and build their large positions at favorable prices. These events are known as "stop hunts" or "liquidity grabs."

The EMMS indicator is a specialized tool designed to detect these specific moments of potential market manipulation. It does not follow trends in a traditional sense; instead, it identifies high-probability reversal points created by the calculated actions of Smart Money trapping other market participants.

How It Works: The 3-Module Logic
The indicator uses a multi-stage confirmation process to identify a potential stop hunt:

1. Anomaly Detection: The engine first scans the chart for "Anomaly Candles." These are candles with unusually high volume and a very long wick relative to their body. This combination signals a sudden, forceful, and potentially unnatural price push.

2. Liquidity Zone Detection: The indicator automatically identifies and tracks recent significant swing highs and lows. These levels are considered "Liquidity Zones" because they are areas where a large number of stop-loss orders are likely clustered. These are the "hunting grounds" for whales.

3. The Stop Hunt Signal: A final signal is generated only when these two events align in a specific sequence:

An Anomaly Candle (high volume, long wick) spikes through a previously identified Liquidity Zone.

The same candle then reverses, closing back inside the previous price range.

This sequence confirms that the move was likely a "trap" designed to engineer liquidity, and a reversal in the opposite direction is now highly probable.

How to Interpret & Use This Indicator
BUY Signal: A BUY signal appears after a sharp price drop that pierces a recent swing low (taking out the stops of long positions) and then aggressively reverses to close higher. This suggests that Smart Money has absorbed the panic selling they just induced. The signal indicates a potential move UP.

SELL Signal: A SELL signal appears after a sharp price spike that pierces a recent swing high (taking out the stops of short positions) and then aggressively reverses to close lower. This suggests that Smart Money has sold into the FOMO buying they just created. The signal indicates a potential move DOWN.

This indicator is best used as a high-probability confirmation tool, ideally in conjunction with your understanding of the overall market trend and structure.