How does the dealer sit in the village and harvest leeks, and the whole process exposes "collectible dry goods"
Analysis→ opening a position→ trial disk→ consolidation → initial rise→ washing → pulling up→ shipment → rebound→ smashing → cycle of reincarnation...
1️⃣ Preparation stage
Before the dealer starts to intervene in a certain currency target, it will comprehensively collect all aspects of the project, including the total number of chips, unlocking for accurate statistics, the cost of investors at all levels, the dispersion of chips, and the evaluation of community popularity.
Once the information is gathered, they set a target based on the amount of money they can mobilize. (e.g. altcoins, self-issued coins are ignored)
2️⃣ Position opening stage
Before opening a position, the market maker will carry out a variety of research and research, covering market sentiment, BTC market trend in the currency circle, macro, policy risks, etc.
Typically, market makers enter the market at a time when the market is generally unfavorable, the market sentiment is generally sluggish, leek confidence is frustrated, and the outlook for the currency is pessimistic. As the saying goes, when retail investors are afraid, when the market makers are greedy.
Depending on the strength of the banker, the proportion of its position is also different, the short-term dealer can control 10% - 30% of the number of chips to trade, while the long-term dealer often needs to master more than 40% of the chips, of course, this depends on the strength of the dealer. In general, the dealer does not open a position at a high level.
㊙️ The main methods of the market maker are as follows:
🔶 Negative bargaining: Negative news in the lending circle, such as project technical failures, rumors of stricter supervision, etc., has suppressed the currency price and triggered panic selling, thereby absorbing chips at a low level.
🔶 Short trap: Create the illusion of a downward trend in currency prices through technical means to induce retail investors to sell, and market makers will undertake at a low level to complete the layout of opening positions.
🔶 Huge number of foodies: Concentrate funds to buy a large number of target currencies in the short term, push up the trading volume, attract followers, and secretly collect chips.
🔶 Rebound hoarding: In the rebound stage after the currency price falls, gradually buy, and use the psychology of some investors to unhedge or take profits to expand their positions.
🔶 Ambush of new projects: When major technical upgrades, new application scenarios or strategic cooperation are expected for projects related to the target currency, the position will be established in advance.
3️⃣ Try-out stage
At this stage, the market maker raises or suppresses the currency price in a small range, observes the market buying and selling behavior, trading volume, pending orders and emotional fluctuations, and understands the key information such as the degree of chip locking, the strength of the follow-up order, resistance and support levels, etc., so as to provide a basis for the fine-tuning of the follow-up trading strategy.
However, the trial plate is not a necessary option, some bookmakers with a keen sense of market smell and rich experience, may directly start to pull up or take other operations, and the timing of the trial is flexible, can be carried out in a timely manner throughout the whole process.
4️⃣ Finishing stage
In order to optimize the chip structure and accumulate upward energy, consolidation can be subdivided into low, medium and high consolidation according to the position of the currency price. The currency price trend is mostly alternating between rising, falling and consolidating, of which the consolidation occupies a lot of time, and the currency price fluctuates smoothly and the direction is unclear at this stage, which tests the patience of investors. The market maker will take this opportunity to consolidate the cost of holding the position, clean the floating chips, and wait for the opportunity to rise. This stage is often the most patient test for leeks, because their movements are more annoying.
5️⃣ Initial Ascending Stage
After completing the preliminary preparation, the market maker starts the initial rise market, moderately raises the currency price, attracts the attention of the market, stimulates the enthusiasm of over-the-counter funds, and alleviates the subsequent upward resistance. However, in order to avoid premature exposure of intentions and arouse follow-up and regulatory attention, the initial rise is limited, and then the currency price will fall slightly, cleaning up profits and unstable chips, and laying a solid foundation for the subsequent steady rise.
6️⃣ Washing stage
After accumulating a certain amount of chips, Dog Bank will adopt a strategy of suppressing the currency price in order to expel the follower market and force the early holders to sell. This can not only absorb more chips at a low level, reduce the cost of holding positions, but also eliminate weak-willed retail investors, reduce the subsequent pull-up and selling pressure, and create conditions for high-priced shipments.
7️⃣ Pull-up stage
After a series of operations in the early stage of chip absorption, trial and shuffling, the long and short sides have formed a high degree of unity to a certain extent, and after the dealer controls a large number of chips and stabilizes the market situation, the price of the currency rises naturally. In the rallying stage, the currency price rose rapidly, and the market makers attracted more investors to follow the trend by virtue of the clever use of market heat, technical indicators, good news and other factors, which promoted the currency price to record new highs and achieve huge profits.
8️⃣ Shipment stage
As "the apprentice who will buy is the master, and the master who will sell" said, shipping is the key goal of the banker. Only after the successful distribution of chips can the paper profit be converted into actual profit. Distribution is the most critical stage in the process of banking, because any banker can only convert the profit on the book into actual profit only when the chips are successfully distributed.
To this end, the dealer will do everything he can, such as concocting the illusion of market prosperity, using media public opinion to guide emotions, using false transactions in related accounts to create an active atmosphere, etc., to induce unknown leeks to take over and ensure smooth shipments.
9️⃣ Bounce phase
After the price falls, there is often a brief rebound, that is, the rebound phase. When the currency price falls to near the profit line due to the shipment of the bookmaker, due to the "bottom-buying" psychology of some leeks and the shipment demand of their remaining chips, the currency price will be slightly raised and a rebound will be created.
However, this is mostly short-lived, and the currency price is likely to continue to fall after the rebound, or even hit a new low. If investors rashly "buy the bottom", it is very easy to fall into the trap of trapping, and the rebound stage is in the process of sitting in the bank, which is a secondary stage, and some targets have no rebound process.
🔟 Smashing stage
🔶 Passive selling: In the event of sudden shortfalls, such as major technical loopholes, project party disputes, sudden changes in regulatory policies, etc., triggering a wave of panic selling in the market, market makers may be forced to smash the market in order to reduce losses. This behavior may cause the dealer to abandon the bank and leave the market, or seek an opportunity to absorb chips at a low level after smashing the market, and control the market again.
🔶 Smashing after selling at a high level: After the dealer successfully ships at a high level and locks in profits, the remaining small amount of chips has nothing to do with the overall situation, at this time, smashing can not only suppress the currency price, but also absorb chips for the follow-up low-price layout, without taking into account the market image and cost.
🔶 Smashing for the new market: After a round of speculation is over, the market maker will use the remaining chips in his hand to deliberately smash the market for the next round of low-cost, create a short atmosphere, induce investors to sell, and test the bottom of the market and investor psychology at the same time, paving the way for the start of the new market. Start a new harvest cycle.
No matter what kind of dealer it is, it is always inseparable from the three stages of opening a position, pulling up and shipping, which is the most basic "trilogy" of the dealer sitting on the bank.
Stand more in the perspective of the main force and think about the intention of the main force, so that you can follow the pace and eat meat and drink soup together!
The cryptocurrency circle is always repeating yesterday's story.
The speculation sector is changing, the price is changing, and the people who buy and sell are also changing, but human nature has not changed.
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