There can be different ways to detect momentum ignition. Here I exposed one possible approach... The trade surveillance system could be set to:
- Identify sets of relatively large consecutive, or quasi-consecutive, buy (sell) trades made by the same market participant that had a relevant upward (downward) impact in the market price;
- Check whether the manipulator sold (bought) a similar or larger quantity some moments later (from a few microseconds up to a few minutes) at a higher price (higher than the one directly marked by the manipulator).
Then, the trade surveillance analyst or the system itself (if in a more automated environment) should be able to check whether the manipulator's buy (sell) trades did lead other traders to place new buy (sell) orders in a way significant enough to move the price further.
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