How to identify the moment of suppression before the rally and practical skills

The trading of a certain stock is calm, with little fluctuation in the stock price. The number of orders in the lower range is gradually increasing, but these orders seem to be natural orders from the market and there is no intention to actively push up. Finally, the index began to rebound, with a clear upward trend and a large upward angle, indicating that the stock prices of most individual stocks had rebounded during the trading session. At this point, the stock finally experienced abnormal movements. However, the first thing that appeared was not the proactive buying we had hoped for, but a significant sell-off that immediately smashed all the orders from the lower end. We were angry and didn't want to look anymore, so we switched to other stocks; However, when we returned to the stock again, we were surprised to find that its price had skyrocketed.

This is a trading detail that often appears during trading sessions. Now let's analyze this detail.

Due to the significant increase in stock prices later on exceeding the intraday gains of the index, we can at least confirm that at this moment, the stock price was manipulated by the main force in the intraday market. This is easily recognized, the key is the previous big selling order. Due to the significant increase in the index at that time, there was no reason to explain why this large sell order had to be rushed down, so it should be the main force. The usual explanation is that the main force reduced its holdings due to the rebound of the intraday index, which can be understood as the main force selling. But the subsequent trend is clearly that the main force is rising. There is a contradiction here.

In fact, there is only one possibility, which is that the main force smashed the following orders before the rally. This operational detail highlights the characteristics of the main operation.

The main means of operation for the main force is to try to take advantage of the situation and push up the stock price as much as possible after establishing a large number of positions, and there may be some fluctuating reductions in positions. However, after the main force completes the establishment of positions, they should generally maintain their original positions. However, every strong push up in stock prices will inevitably increase their positions. Therefore, whenever possible, the main force will sell stocks as much as possible without affecting the stock price.

Returning to this case, as the stock price is about to rise, smashing the following orders in the previous moment will not have a negative impact on the stock price, while the main force has achieved the goal of reducing positions.

This detail reminds us that firstly, the main force is no longer in the warehouse building period, but whether it has been trapped cannot be confirmed based on this detail; Secondly, the main force is already very unwilling to increase their positions, indicating that their existing funds are not abundant; Finally, the main force only operates by taking advantage of the situation and will not forcefully push up against the trend.

In fact, we can draw the following inference: the stock has not undergone significant fundamental changes recently, and the overall stock price fluctuates with the market, but it may be relatively strong.

We always hope that the main force will vigorously push up the stock price, but the direct consequence of doing so is to increase positions. Unless in the stage of building positions, the main force will not be willing to increase positions, so they always look for opportunities to reduce positions.