Common methods used by market makers for accumulating and distributing stocks!
1. Price suppression for accumulation
Market makers intentionally lower prices to trigger stop-loss orders, then buy virtual currencies at low prices and wait for the market to recover for a big profit. This strategy is suitable for currencies with low trading volume and few orders.
2. High-level volatility
The market maker does not increase volume during the first wave of decline but chooses to create high-level volatility, making most investors believe that prices will rise again, thereby taking over the stock, ultimately achieving the goal of distribution.
3. Price difference distribution
Some market makers do not pursue short-term profits but instead sell chips at high prices and then buy back at low prices to reduce the cost of their holdings. This method appears as long upper shadows at high positions and long lower shadows at low positions on the candlestick chart.
4. Inverted V-type distribution
This is the most direct and often unprofitable method of distribution, where market makers sell aggressively without regard for cost, causing prices to drop rapidly. As long as prices are above the market maker's cost, they will distribute.
These methods demonstrate various strategies that market makers use in the cryptocurrency market, including accumulation and distribution, aimed at influencing market prices to achieve their own profits.