In the currency circle trading, the main force often washes out the market before pulling up, and washes out the unsteady holders through the volatile market. The following are some characteristics of the wash-out stage:
1. Trend characteristics
The main force usually creates violent fluctuations in the wash-out stage before pulling up to test the market's holding patience:
V-shaped or W-shaped structure: The currency price rebounds quickly or fluctuates repeatedly after a sharp drop in a certain range, forming a V-shaped or W-shaped structure. This shows that the main force creates panic through rapid declines, thereby washing out unsteady chips.
2. K-line pattern
In the wash-out stage, the K-line pattern will have some characteristics:
Long upper and lower shadows: K-lines with long upper and lower shadows are often seen, indicating that there are large buy and sell orders in the market and the fluctuations are violent. Large fluctuations: There will be multiple large fluctuations on the K-line chart, and the yin and yang lines will alternate in the short term, indicating that the market sentiment is unstable.
3. Space characteristics
The currency price fluctuation space in the wash-out stage also has certain characteristics:
Violent fluctuations in the box: The currency price usually fluctuates violently in a wide box, and the main force washes out unsteady chips in this way. Changes in volume: During the oscillation, the market shows short-term panic and uncertainty due to the large volume decline and the small volume rebound.
4. The signal of the completion of the wash
Identifying the signal of the completion of the main force's wash is very important for judging the upcoming pull-up:
Shrinking and stabilizing: When the price of the currency stabilizes after a sharp fluctuation, and the trading volume decreases significantly, it usually means that the wash is coming to an end and the main force is ready to start pulling up. Gradually increasing the volume: After the wash is over, the price of the currency gradually increases, indicating that the main force has completed the wash and is ready to enter the pull-up stage.
Conclusion
The characteristics of the main force's wash before the pull-up are manifested in the trend, K-line shape, spatial characteristics and volume changes. Understanding these characteristics and signals will help investors better grasp opportunities during the trading process and avoid being shaken out by the wash.
