The process of absorbing funds is the process of centralizing pricing power, while the process of distribution is the process of dispersing pricing power.

The more centralized the pricing power, the smaller the volatility; the more dispersed the pricing power, the greater the volatility.

Turnover is the process of converting pricing power; the larger the trading volume, the greater the conversion of pricing power.

Therefore, within a certain range, if the volatility is decreasing, it indicates a process of centralizing pricing power. Pay attention to the main buying and selling forces and their tendencies; whether there is an urgent buying or selling force within the range (urgency is represented by long and voluminous candlesticks, which indicate trading tendencies).

Thus, the trading process is a cyclical process of centralizing pricing power -> dispersing pricing power, until finally the pricing power is no longer centralized and the market becomes disordered.

For example, in the case of virtual, it has experienced two processes of centralizing pricing power. The process of centralizing pricing power often involves changing or brewing a trend, while the process of dispersing pricing power often follows the trend.

Similarly, the top also applies to the process of centralizing pricing power; however, in this process, the selling force is greater than the buying force, so the next process of centralizing pricing power can determine whether the market will continue upward or downward.