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As retail investors in cryptocurrency, we actually fear two things: one is the main force washing the plate, where it rises as soon as we sell, and the other is the main force offloading, where it falls as soon as we buy. So how do we distinguish whether the main force is washing the plate or offloading? I will reveal the true intentions of the main force from four aspects. Top-notch insights, I suggest you bookmark this and read it several times.
1. Let's look at the trading volume. When the main force is washing the plate, the trading volume will definitely shrink. Because before washing the plate, they have already controlled most of the chips, so there won't be much action during the washing. On the other hand, offloading is different; the main force can supply the retail investors with unlimited chips, giving them as much as they want. At this time, the trading volume must be increasing.
2. Let's look at the relative position of the coin price. If the coin price has only risen by 10%, then at this point, the main force does not have much profit margin, and it is very likely that they are washing the plate. Conversely, if the coin price has already doubled, the main force has already made substantial profits, and to be stable, they will definitely offload steadily.
3. Next, let's look at the intraday chart. Washing the plate is meant to scare off indecisive retail investors, so the main force will use a slow rise followed by a sharp drop to achieve the purpose of shaking out. However, when offloading, the main force pretends that the market is relatively stable to lure retail investors in, so the amplitude on the intraday chart will be controlled relatively small.
4. Finally, let's look at the chip distribution. When washing the plate, the chips will remain at the bottom, while during offloading, the chips will continuously accumulate at high positions because the main force is constantly throwing out chips. At this time, retail investors will be misled into entering the market to take over.
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