$PIPPIN 🔍 What is "Account Draining"? (In simple terms)



Simply understood:

Whales manipulate the price to go up and down within a narrow range to take money from early / impatient traders.

Not to go far, but to sweep orders.



🧠 How do they drain liquidity?

1️⃣ Slightly pull up → lure long
• Price nudges up
• No need to break the high
• People see “breakout imminent” → go long
• Stop-loss usually placed just below the small bottom

👉 Then:
• Price gently reverses
• Sweep long stop-losses
• No need to sell aggressively



2️⃣ Push down slightly → lure short
• Price drops lightly
• People think “collapse” → go short
• Stop-loss placed just above the small top

👉 Then:
• Price bounces back
• Sweep short stop-losses
• Also no need to pull far



❓ Why does the price reverse before you enter a trade?

👉 It’s a liquidity drain signal.

If it’s a real trend:
• Price should:
• Move steadily
• Volume increases
• Few reversals

But here:
• Moves a short distance
• Reverses quickly
• Doesn’t break important levels
→ The goal isn’t to continue, but to sweep new entrants.



📊 Recognizing liquidity drain signals (is very practical)

Just remember these 4 signs:
1. Price moves sideways within a narrow range for a long time
2. Long wicks on both ends of the candle
3. Volume gradually decreases
4. Fake breakout (touching a level then reversing immediately)

👉 Seeing 2–3 signs = liquidity drain in progress.



🧠 So what do smart traders do now?

👉 Standing aside is winning.

Only act when:
• Price breaks a level and holds
• Or breaks a level and doesn’t bounce back



A phrase to remember for a long time

Liquidity drain happens when the market doesn’t want to go anywhere,
but wants to take money from impatient traders.
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