Accumulation Phase: Discreetly Acquiring Chips
In the accumulation phase, the market maker cleverly accumulates chips through various methods (such as lowering prices, consolidating, or driving prices up). They create panic or induce retail investors to sell, allowing them to accumulate enough positions at lower prices while patiently waiting for an opportunity for market reversal.
Washing Phase: Clearing Floating Chips
During the washing phase, the market maker creates fear through fluctuations or market control, forcing holders to sell, thereby clearing floating chips and preparing for the subsequent price increase.
Price Increase Phase: Sharp Price Surge, Attracting Retail Investors
After the accumulation and washing phases, the market maker starts to aggressively raise the price, using capital advantages and operational skills to attract retail investors to chase higher prices. At this moment, market enthusiasm is high, prices rise rapidly, and the market maker takes the opportunity to profit.
Distribution Phase: Selling at High Prices, Quietly Retreating
When the price reaches the expected peak, the market maker begins to distribute chips at high levels, enticing retail investors to buy in. By creating market hotspots or accelerating price increases, retail investors rush to buy, while the market maker quickly exits, leaving retail investors to bear the risks.