A picture and text to understand how the dealer washes the plate, and the retail investors refuse to hand over their chips, will they keep washing the plate? "Third Round"
1️⃣ The first question: the real purpose of the bookmaker's washing
🟨 Wash ≠ simply grab chips
Many brothers believe that the dealer shuffles in order to snatch the tokens from you.
There is some truth to this view, but it is not comprehensive.
The real goal of the market maker wash is to create market panic and volatility by creating
Purge the undetermined holders (i.e., floating chips),
This allows you to collect more tokens at a lower cost while reducing resistance to subsequent ramps.
To put it simply, the purpose of the shuffle is to optimize the position structure of the market maker, not simply to snatch the tokens of retail investors.
🟨 Reduce costs and reduce selling pressure
Let's understand the logic of the bookmaker's operation with an example.
Let's assume that an anonymous team issues a total of 1 billion MEME coins with an initial price of $0.01.
After the project team locks 50 million shares through the liquidity pool to establish a bottom position, it uses a robot program to create price shocks on the decentralized exchange:
🚩 Phase 1: Pull the price up from $0.01 to $0.03 to attract the first FOMO funds.
🚩 Stage 2: Create a daily decline of 15% for three consecutive days through multi-account reversal trades.
🚩 Stage 3: Spread similar rumors such as "team running away and smashing the market" in Telegram groups and Twitter, triggering panic selling.
🚩 Stage 4: After recovering the chips at a low price, cooperate with the exchange listing announcement to violently pull the market.
In this process, the holding cost of the project team decreased from $0.012 to $0.008, and the position increased from 50 million to 80 million, laying the foundation for subsequent control.
Through this series of operations, the bookmaker accumulates more chips at a lower cost, and at the same time cleans the retail investors who are not determined, reducing the selling pressure for the pull.
🟨 Paving the way for pull-up and high-level shipments
Another key purpose of the wash is to create conditions for pulling up and shipping at a high level.
If the market maker does not wash the floating chips through the shuffle and directly raises the currency price, retail investors may lock up their positions due to the reluctance to sell (that is, they are unwilling to sell and want to wait for a higher price), resulting in the market maker being unable to ship smoothly at a high price.
Through the shuffle, the market maker can screen out the holders who are firmly bullish and attract new follow-up funds to enter the market, so as to achieve "pulling and withdrawing" in the process of pulling up, that is, while pushing up the price, gradually selling the token, and finally cashing out at a high level.
For example, in the above-mentioned MEME coin case, the project team held 80 million tokens at a cost of $0.008 after completing the wash. Subsequently, they pulled the price from $0.008 to $0.015 and then to $0.02, and the market sentiment gradually warmed up, and retail investors chased higher to buy.
When the price reaches $0.05, the project team sells 70 million tokens at a cost of $0.008, earning a profit of about $3.5 million.
After that, they may use the remaining 10 million tokens to continue to manipulate the price, back-and-forth between $0.03 and $0.01, re-collecting chips and preparing for the next round of speculation.
2️⃣ Second question: Will the bookmaker wash the plate all the time?
🟨 The time cost of washing
The bookmaker does not wash the market endlessly, because the duration of the wash is limited by the cost of capital. Market makers usually use leveraged funds, which has higher borrowing costs, and the longer it drags on, the more interest will be paid.
Therefore, if retail investors are unwilling to hand over their tokens, the market makers may increase their wash efforts (such as a larger decline or stronger bearish news), but not indefinitely.
Their goal is to complete chip collection at the lowest cost, and once the expected open interest is reached, they enter the rally phase.
🟨 The limit of washing dishes
When retail investors are generally firmly bullish and reluctant to sell in the wash, market makers may be faced with two options:
🚩 Adjustment strategy: Increase the intensity of the wash, such as through a larger price suppression or more sensational negative news, to force retail investors to hand over their tokens.
🚩 Early pull-up: If the wash doesn't work well and the market maker has collected enough tokens to control the market (e.g. 70%-80% of the circulating supply), they may go straight to the pull-up phase, use market sentiment to push up the price, and then ship at a high level.
Therefore, the market maker will not wash the market all the time, but will flexibly adjust the strategy according to the market reaction and its own financial situation.
The longer the wash takes, the higher the price may need to be pulled by the market maker to cover the cost, but this also increases market risk (such as a systemic crash or regulatory intervention).
3️⃣ The third question: How to judge the banker's washing intention?
🟨 The difference between washing and shipping
The common challenge for retail investors is how to distinguish between washing and shipping.
The core differences between the two are:
🚩 Washing: The price will rise after falling, and the general trend is upward, with the purpose of absorbing chips at a low level and reducing selling pressure.
🚩 Shipments: Prices continue to fall, trading volume shrinks, and the general trend is downward, with the aim of clearing out positions at a high level.
Observing the following metrics can help you judge:
🚩 Turnover rate: During the wash period, the turnover rate usually remains at a high level, indicating that there are funds absorbed at a low level; At the time of shipment, the turnover rate gradually decreased, and the market lacked capacity.
🚩 Trend line: When washing, the price runs upwards based on the moving average (such as the 20-day moving average); At the time of shipment, the price falls below the moving average, and the moving average turns downward.
🟨 Common form of dish washing
The common washing methods used by market makers in the currency circle include:
🚩 Intraday washing: A sudden price crash during the trading day followed by a rapid recovery, commonly found in strong currencies, designed to scare out panic orders.
🚩5-day line washing: The price continues to rise after stepping back on the 5-day moving average, which is suitable for short-term strong currencies.
🚩20-day line wash: The price retraces to the 20-day moving average, completing the intermediate wash, which is suitable for medium and long-term currencies.
🚩 Triangle Wash: The price falls back from the high to the rising point, forming a triangle pattern, which is suitable for the early stage of the big bull coin.
4️⃣How do retail investors deal with the wash?
🟨 Stick to the bottom stack
In the face of market maker washdowns, retail investors should avoid panic selling, especially when holding low-cost tokens. Methods for judging the bottom area include:
🚩 Chip Concentration: The bottom chip concentration area is usually the cost zone of the dealer.
🚩 Turnover rate: A turnover rate of more than 200% over a period of time may indicate a market maker cost range.
🚩 Volume and energy pile: The average price of volume accumulation is often close to the cost of the market maker.
🚩 Large single pressing: The handicap appears as a large single pressure plate, which is usually the cost position of the bookmaker, and it often rises after the pressure.
As long as the holding cost of retail investors is lower than that of market makers, there is no need to worry about being washed out.
🟨 Rationally judge trends
Retail investors should avoid subjective speculation and blindly believe that falling is a wash or rising is tempting long. It is recommended to judge the trend according to the disk signals (such as the direction of the moving average, the change in volume), and sell high and buy low at key points (such as the cost area of the bookmaker) and wait for the pull-up.
🟨 Control risk
Retail investors should allocate funds reasonably and avoid excessive concentration in a single currency.
If you can't see through the intentions of the market makers, it is best to avoid highly controlled currencies and choose to invest in head projects with strong fundamentals.
At last
In fact, brothers, the dealer shuffles the plate well, and when the retail investors refuse to hand over the chips, the dealer will not keep washing the plates. The purpose of the shuffle is to collect tokens at a low cost, reduce the pressure to pull up the selling, and pave the way for high-level shipments, rather than simply grabbing retail chips.
Due to the limitation of time cost and financial pressure, the bookmaker will adjust the strategy when the washing effect is not good, either increase the intensity or pull up in advance.
The key for retail investors to cope with the market wash is to stay calm, stick to low-cost chips, and judge the trend through the market signals.
As long as you grasp the operation logic and cost area of the banker, retail investors can avoid becoming "leeks", and even dance with the banker and get a piece of the pie.
In the market full of games, understanding the deep meaning of market makers is the first step for retail investors to protect their own interests.
Hopefully, this article will provide you with some inspiration and help you be more prepared in your future investments.
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How did the dealer expose the "second bullet" through the whole process of washing and harvesting
Continuing from the above, washing in the currency circle refers to the manipulation of the currency price by the main force or market maker through a series of specific trading methods, so as to achieve the purpose of cleaning floating chips and consolidating control.
The shuffle is mainly to allow ordinary players to sell their chips at a relatively low level.
Its method is to torture the player's patience and confidence in holding coins through long-term sideways shocks and sharp falls.
obediently handed over the low-priced chips in his hand to the main force, paving the way for the start of the main rising wave.
1️⃣ The core purpose of the dealer washing
◽️ Swap hands for unplanned chips: drive the early coin holders out of the car to prevent them from making too much profit, tossing coins halfway, and ultimately threatening or affecting the main operation plan, so as to avoid making the dealer pay too much to raise the cost or affect the smooth shipment.
◽️ Constantly change the currency holders at different stages to enter the market: to raise the cost of their currency holdings, and further reduce the pressure on the main market to pull up the currency price. Increasing the average holding cost through repeated shuffling will also help the main force to sell coins at a high level and leave the market, preventing the main force from scaring away retail investors as soon as it shows signs of selling, so that it can be distributed calmly at a high level in the future.
◽️ Sell high and buy low in the process of shocking: the market maker can earn a part of the difference to make up for the higher transaction costs paid in the rally stage. In this way, it not only increases its capital in the future, but also increases its confidence, and can also make the market unable to figure out the cost of the main force and the position of the main force in the future.
◽️ Adjust the proportion of funds: If the main force eats a large proportion of chips at the bottom and does not leave enough pulling power, you can use the higher price at the beginning of the wash to ship and restore the pulling power.
◽️ When most of the chips are concentrated in the hands of the main force, it is relatively easy to raise the price of coins, and the core is to pave the way for the opening of the main wave (shipment).
2️⃣ The core means of the dealer washing
Washing the dish can't wash away the retail investors, it's almost impossible. As long as retail investors are still watching, the main force has a way to wash out retail investors. Because retail investors do not clean to a certain extent, it will affect the trading plan of the main force, which is not allowed by the main force.
There are many tricks to clean retail investors, and there are three tricks that make retail investors uncomfortable the most.
🟨 "Grinding", the main force often uses the trick of "grinding" to grind the bottom, and the time is very long, and the currency price just does not rise. Retail investors who rise by 1U and fall by 2U and have poor patience will be "grinded" out by the main force.
🟨 "Pit", after experiencing "grinding", there are still many retail investors who have not washed out, and the main force will dig pits and continue to clean retail investors. The main force digging a "pit" will create a rapid decline in the price of the currency, resulting in a feeling of breaking down and not seeing the bottom below. Let retail investors fear, not knowing how long the currency price will fall and how deep. Many retail investors have been pitted by the main force and have never had a chance to climb out.
🟨 "Coercion and inducement". After experiencing the above two tricks, the washing has not reached the ideal value of the main force, and the main force will use the trick of "coercion and temptation" to clean again. The so-called "coercion and inducement" is the main force to pull up the test market, so that retail traders can have a return or small profits, and they will receive it when they see it. If it is not accepted, the main force will control the price of the currency to fall naturally, forcing retail traders to go out.
Here are some common bookmaker washing methods and their characteristics:
🔻1/ Pressing type washing
Suppressive washing refers to the accumulation of a large number of profitable orders in the market after the main force completes the opening of positions and a large test pull. The main force took advantage of investors' desire to take profits, and suddenly suppressed it with a backhand, causing the currency price to fall sharply, strengthening the panic atmosphere in the market, shaking investors' confidence in holding coins, and forcing them to hand over their chips in order to achieve the purpose of cleaning floating chips. This kind of washing method is characterized by "fast" and "ruthless", and its speed of suppressing the currency price is very fast, and the decline is large and the method is fierce. This method is usually carried out by the main force with strong strength and trading ability, mainly for those currencies that are highly speculative, fast in the market and have too large short-term increases.
🔻2./Sideways washing
Sideways washing, also known as platform washing, is characterized by the formation of a long-term platform consolidation pattern in a certain area. The main force is aimed at the weakness of the impatience of market investors, and uses time to wear down the will and patience of the dealers, and once again forces them to hand over the chips in their hands. During the sideways period, the chips held by retail investors fully change hands in the trading platform, and the trading volume is gradually shrinking. This method is usually adopted by the weaker main force, mainly through the long-term dull trend of the cowhide to wear down the confidence of retail investors to hold the currency, in exchange for time for space, is the longest time consuming of all the washing methods.
🔻3/ Oscillating washing
The oscillating washing method is to concentrate multiple techniques of pulling up, sideways, and suppressing, and it is the most commonly used washing technique of the main force. Its advantages are: compared with the suppressive washing, it can avoid the loss of low-priced chips; Compared with horizontal disc washing, it can shorten the washing time. The main force shuffles the market by repeatedly oscillating up and down, so that market players cannot see the true intention of the main force, disrupt the pace and rhythm of their participation, and make them often in the midst of chasing up and down, so that they are forced to leave the market and wait and see. This method of washing is more confusing, the trading volume is more active, and the currency price is maintained in a range up and down. On the daily K-line chart, yin and yang are combined, and they mostly appear in triangles, rectangles, flags and other collation patterns.
🔻4/ Pin burst contract washing
For example, the crypto market has recently entered a volatile washing stage, and price volatility has increased significantly. The main force washes the market by inserting a pin to burst the contract, removing the chips with excessive leverage and insufficient confidence, and preparing for the next round of rise. This method of washing creates greater price fluctuations, so that the main force can distribute at a high level or absorb chips at a low level, so as to obtain greater profits. In this process, market sentiment fluctuates violently, resulting in a weakening of spot pricing power, and the market is prone to violent fluctuations, increasing the trading risk of players.
🔻5/ Fast-falling and fast-rising washing
Falling fast and rising quickly is also a washing technique often used by the main force. This kind of washing technique generally washes the chips that are not firm and the chips that look at the technical side. The rapid decline in the currency price and then the rapid V-shaped reversal and rise can basically confirm that the previous decline is a wash. In this way, through rapid price fluctuations, investors panic in a short period of time, so as to hand over the chips in their hands.
In order to achieve the purpose of getting most retail investors off the bus, without being seen by retail investors, market makers will adopt different shuffling methods according to the different market holdings and changes for some holders, as well as changes in various objective conditions.
3️⃣ How to follow the rhythm of the dealer washing
🟢 The bottom narrowly shrunk "loom" oscillation
Features: The currency price fluctuates in a narrow range in the bottom area, and the trading volume gradually shrinks, forming a "loom" pattern. The main force is absorbing chips at this stage, waiting for the right time to start the rise.
Operation: The main force took advantage of the good news to pull out the long white line and start the rising market. At this time, investors should pay attention to the changes in trading volume and confirm whether it is the start signal after the main force absorbs chips.
🟢 The bottom is wide and the volume is oscillating
Features: The currency price fluctuates in a wide range in the bottom area, the rise is limited, and the trading volume remains at a low level. In this way, the main force cleans the chips that are not firm.
Operation: When the price of the currency breaks through the pressure level, retail investors tend to step in. At this time, the main force may continue to create shocks and further clean the chips. Investors should pay attention to the change in trading volume after the breakout to confirm whether it is a valid breakout.
🟢 After the technical situation stabilized, it slowly rose and shuffled
Features: After the technical level stabilized, the currency price began to rise slowly, and the trading volume gradually increased. In this way, the main force gradually cleanses the chips that are not firm.
Operation: Retail investors should intervene and hold as soon as possible, and consider leaving the market when there is a large white candlestick. In this case, investors should pay attention to the changes in trading volume and confirm whether it is the main washing behavior.
🟢 Double-bottom washing does not increase volume
Characteristics: The currency price forms a double-bottom pattern, with the left and right bottoms alternately declining, and the trading volume remains at a low level. In this way, the main force induces the technocrats to leave.
Operation: When the currency price breaks through the previous high, it is a good time to intervene. Investors should pay attention to the volume change at the time of the breakout to confirm whether it is the main signal of the end of the wash.
🟢 Falling fast and rising shuffle
Features: The rapid decline in the price of the currency followed by a rapid V-shaped reversal rise, targeting the undetermined and technical chips.
Operation: When a V-shaped reversal is confirmed, investors can consider stepping in. In this case, investors should pay attention to the change in trading volume at the time of the reversal and confirm whether it is the main washing behavior.
🟢 Bearish pattern washing
Features: The currency price continued to fall, and the trading volume gradually shrank. In this way, the main force creates panic in the market and cleans the chips that are not firm.
Operation: Investors should pay attention to changes in volume and energy, and when there is a significant change in trading volume, it may be a signal of stabilization, and they can consider intervening at this time.
🟢 After the fall, it traded sideways and rose slightly and fell slightly
Features: The currency price entered a sideways state after falling, with small rises and small falls, and a slight increase in trading volume. The main force further cleans the chips in this way.
Operation: When the amount of heaps is small and the yin and the yang are stable, you can consider opening a position. Investors should pay attention to the changes in trading volume and confirm whether it is the main washing behavior.
🟢V-shaped inverted washer
Features: The currency price forms a V-shaped reversal, similar to the double bottom but without the right shoulder pullback, and the main force creates a strong "head and shoulders bottom" pattern in this way to prevent retail investors from getting on the bus.
Operation: Investors should pay attention to the change in trading volume at the time of reversal and confirm whether it is the main washing behavior. When a reversal is confirmed, intervention may be considered.
🟢 After stabilizing, the shrinkage is small and the number of steps rises
Features: After the currency price stabilized, it rose in small steps, and the trading volume remained at a low level. The main force cleans the chips that are not firm in this way, and the graphics are stable.
Operation: Investors should hold the currency and wait for it to rise, pay attention to the changes in trading volume, and confirm whether it is the main washing behavior. When there is a noticeable change in volume, it may be a signal that the main force is ready to accelerate its rise.
🟢 A pullback after a mini-rush climax
Features: When there is a small rush to buy in the market, the main force may carry out a shuffle, the purpose is to cool the market and gather energy again for the later rise.
Operation: The low-volume column pullback after the small rush high is an excellent entry point. Investors can intervene after the pullback is over, when the volume is confirmed to be amplified.
🟢 The amount of energy can change the washing
Features: The main force is in the process of washing, and the trading volume usually shrinks gradually. When the price of the currency starts to rise, the trading volume will be significantly amplified. If the trading volume of the main force shrinks every time it rises, it can basically be concluded that it is still washing; And if the rise of a certain day is suddenly large, it may be a real breakthrough.
Operation: Investors should pay close attention to changes in trading volume, and consider intervening when there is a rise in volume.
🟢 Dead-end chip suction mode
Features: The main force quietly keeps buying chips in a downtrend, causing the price to fall smaller than one wave, or directly to form a panic sell-off with a wave of rapid decline. As the accumulation of chips draws to an end, retail investors have exhausted their chips, and the line connecting the downward trend line and the downward trough has formed a dead end.
Operation: When encountering this type of currency, you can boldly enter the market and set the stop loss a little lower than the minimum price of the dead end.
When waiting to buy: When the currency price falls rapidly, short-term investors can combine the moving average, volume, support and resistance levels and other technical factors to comprehensively analyze, if there is strong intraday support and active buying, they can wait for the opportunity to buy.
Already buying at a high level: Medium and long-term investors can ignore the temporary ups and downs of the currency price, do not rush to buy during the rise, and continue to hold the currency to rise.
Combine a variety of indicators: Players can combine moving averages (MA), relative strength index (RSI), MACD, volume and price and other technical indicators to comprehensively judge the market trend.
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!
Remember: the washing of dishes is to prepare for the opening of the main rising wave, and do not fall before dawn.
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