Just now we talked about what a washout is, now let's talk about what offloading is?

Four super useful methods to judge wash trading and offloading!!

New investors, pay attention! What is the difference between wash trading and offloading? As retail investors, how can we distinguish so that we are not harvested?

First, what is wash trading?

The purpose of wash trading has three points: to clean up floating chips; to accumulate chips; to reduce risks.

For example, if I am the dealer, and you are the retail investor. At a low point, I acquire some chips, and then I will shake the market wildly at this position (Figure 1) and continue to drop at the low point.

I might even let my price drop below my holding cost, and this action can easily wash out two types of people: 1. Those who cannot hold on; 2. Those who cannot bear loneliness.

For instance, you have been holding for months, and everything else has risen, but the coin you bought has not. Then you adjust your position, and if you don’t adjust, you feel anxious; once you adjust, it starts to rise.

If you are not washed out this time, then you might understand some technical analysis and have a bit of knowledge about dealer thinking. You judge that I am about to start, thinking it will rise all the way.

Sure enough, it rises to this position, but what problem arises at this time? The skills, psychology, and thinking you learn can be learned by others too. Once there are more and more such people, if the dealer raises the price too quickly, there will be risks because we can run away at any time.

Dealers are different; they have billions in capital and most likely have not reached their goal. For example, if they want to raise it to 100, but it is only at 50 now, they will wait. They let those who want to run away first run, and then take the opportunity to accumulate chips at the low position. Once everyone has sold off, they can then raise the price.

Because retail investors have a characteristic of chasing highs and cutting losses. Dealers want people to get on board during the rise, not during the accumulation, as this makes the rise too heavy (for example, $BOME ), so they will use wash trading to reduce the dealer's risk!

Thus, wash trading also implies a problem:

1. Not at the top; 2. Not at the main target position.

So what is offloading? The purpose is actually to find someone to take over (I will explain this in detail next time).

I am Senlin, an old investor devoted to spot and futures trading. Recently, I will continue to lay out valuable coins on the Sol chain and explosive golden dogs. Interested friends can call me! #土狗 #Solana涨势分析 $PNUT $NEIRO