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How do bookmakers wash and suppress stock prices?

author:Xiaobai reads finance and economics
How do bookmakers wash and suppress stock prices?

Bookmaker trading is always inseparable from the three stages of position building, pulling up, and shipping, which is the most basic "trilogy" of the main trader and is indispensable in the trading process. But in the specific actual operation, the process of trading is not so simple.

A complete main trading process should include the following stages: preparation before entering the market, opening a position, testing, sorting, initial rise, washing, pulling, shipping, rebounding, smashing, and sweeping.

How do bookmakers wash and suppress stock prices?

Since there are more specific contents of the entire trading process, then I will pick the washing and suppression actions that are easy to confuse retail investors. The suppression action can appear in the stage of the market maker's position building and washing, which may be through the suppression action to let the panic disk flow out, so as to get more chips in the market, or it may be through the suppression action to shock out the floating chip and reduce the pressure of the subsequent pull-up.

First, the suppression action of the market maker's position building stage

In the process of opening a position in the main force, a part of the chips are eaten in the early stage, and then the plate is smashed down sharply at any cost in order to suppress the stock price. With the outflow of panic and stop loss orders, the stock price continues to fall, and the main force can gradually increase the amount of suction until the target position is basically reached.

The timing of the suppression of the opening of positions is very exquisite, generally will choose the market is in a weak position, and will choose some stocks released by bearish news, the use of the weak and bearish news of the market to continuously suppress the stock price, retail investors because of fear of loss expansion and throw out the chips on the hand, the main force can easily get chips, smoothly open a position.

There are generally three kinds of suppression in the main position building stage, one is the main force to break the support level of the platform, let the technical break, and then suck the chip in the next price area; the second is the main false break through the support level, the break time will not be long, the stock price can soon be recovered; the third is that the main force through the pull-up style first to build part of the position, and then the stock price into the medium-term adjustment, in the form of ABC wave, the C wave is the action of suppression, so that the retail investors who chase the high in the A wave and the previous high chase throw chips.

How do bookmakers wash and suppress stock prices?
How do bookmakers wash and suppress stock prices?
How do bookmakers wash and suppress stock prices?

Second, the suppression action of the market maker's pull-up stage

Suppression and pressure washing can be divided into two situations, one is that after the position is built, the floating chips are washed off by the whipsaw, which reduces the pressure for the subsequent pull-up, and the other is that after the bookmaker pulls up a certain range, the market accumulates more profit plates, retail investors have a strong desire to take profits, and the bookmakers clean up the profit disks through the washing, reducing the resistance for the subsequent pull-up again.

1. After the market maker has completed the position opening operation, before officially pulling up the stock price, many times the necessary washout will be carried out, in order to clear out most of the retail investors who bought at a low level. Because the retail investors who do not buy at a low level are cleared out, once they are pulled up, as the profits become more and more abundant, these retail investors will compete with the market makers at the high level for shipments, which will cause serious interference to the market makers.

How do bookmakers wash and suppress stock prices?

When suppressing the washing, the market maker will use a variety of trading techniques to consume the confidence and patience of retail investors. If we can't identify the market maker's washing behavior, it's easy to release future bull stocks. So, how to identify the washing behavior? The bookmaker pours the goods downwards, forming a downward trend on the graph, generally destroying the technical graphics, but the whipsaw behavior, the more to the back of the k-line amplitude, the smaller the amplitude can be, the smaller the amount of energy, because the bookmaker has reached the goal, retail investors have also fled, there are not many chips in the market in the transaction.

How do bookmakers wash and suppress stock prices?

2, the market maker to pull up the stock price, rarely will be pulled in place, generally is to pull a period of rest, the chart of the stock price trend shows an upward retracement, the retracement is the washing action, let the profit plate sell chips. The whipsaw techniques of pulling up the relay mainly include sideways washing, short-term plunge, stagnant whipsaw, shrinkage washing, and intraday earthquake position. However, in practice, it is difficult to judge only from the technical trend, and it is necessary to combine the comprehensive analysis of fundamentals and the market environment, if the original investment logic is still there, you may wish to carry it.

Whether it is the whipsaw in the opening stage or the whipsaw in the pull-up stage, we must have our own set of coping strategies, it is best not to make a mistake in judgment, resulting in the original profitable transactions, becoming losses, making money when it is out.