To determine whether the market maker is inducing a sell-off, it is necessary to combine the current market structure, technical indicators, and trading volume performance.
1. What is an induced sell-off?
Induced sell-off definition: The market maker intentionally creates panic by a short-term decline, triggering retail investors to sell, thereby accumulating shares at a low price in preparation for subsequent upward movement.
Characteristic performance:
1. Rapidly breaking through key support levels, but then quickly rebounding.
2. Abnormal trading volume, increasing volume during the decline, but significantly increasing volume during the rebound.
3. Technical indicators are bearish, but no breakout trend has formed.