The HFT firms are doing something wrong!!
From last 3 days I have been keeping eye on the top gainers list and out of the top gainers and volume shockers list of shares in almost every share or the other, there is some HFT who had there presence.... And i verified this fact from the Block and Bulk Deals which gets published by the exchange itself.
And when I checked each and every stock on those lists with what average price they were bought and sold the results were quite shocking to me...
If you know a bit of stat and math that how mean - weighted averages work and map them with price clusters along the support and resistance zones, you will get to know what happened!!!
A brief theory of mine is that - these firms come to the shares which are either in news or some event is coming up in few days and they artificially inflate the share prices so that these shares get into scanners of retail traders, then get to certain resistance zones and then start to match orders in a way that can overcome selling pressure and let the buyers accumulate at that zone and then suddenly square off partial positions to trap the buyers and then this process is continued.
and if you don't believe me, just go and check the bulk deals happened at any particular day.... search for HFT names in the list and the respective stocks they traded in that day and the avg prices for buy and sell and go on charts to map them out for that day ... and just analyze everything!!!