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We retail investors are actually afraid of two things when trading cryptocurrencies: one is the fear of the main force washing the盘, where the price rises after selling; the other is the fear of the main force dumping, where the price falls after buying. So how do we distinguish whether the main force is washing the盘 or dumping? I will reveal the true intentions of the main force from four aspects. Top-notch content, I recommend you save it and read it a few more times.
1. Let's look at the trading volume. When the main force is washing the盘, the trading volume must be shrinking. Because before washing the盘, they have already controlled most of the chips, so there won't be too much action during the wash. However, when dumping, the main force can supply retail investors with unlimited chips; whatever you want, they will give you. Therefore, at this time, the trading volume is bound to increase.
2. Let's look at the relative position of the coin price. If the coin price has only increased by 10%, then at this time the main force does not have much profit margin, and it is highly likely to be washing the盘. Conversely, if the coin price has doubled, the main force already has substantial profits, and to be stable, they will definitely sell steadily.
3. Next, let's look at the intraday chart. Washing the盘 is to scare away uncertain retail investors, so the main force will use a slow rise and a quick drop to achieve the goal of shaking the warehouse. When dumping, the main force needs to pretend that the market is relatively stable to trick retail investors in, so the amplitude on the intraday chart will be controlled relatively small.
4. Finally, let's look at the chip distribution. During the washing of the盘, chips will remain at the bottom, while during the dumping, chips will continuously accumulate at high positions because the main force is constantly throwing out chips. At this time, retail investors will be lured into the market to接盘 by various tricks.
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