Practical skills for distinguishing between market washing and shipment by market makers

In the early stages of the rebound, the upward trend is relatively slow, and the main force often cleans up floating funds in order to boost the market in the future. During the market washing process, the stock price usually does not drop by more than 30%; Once the decline exceeds 30%, it will trigger a large number of low-level chips to be cashed out and eventually evolve into "selling".

If it is a shipment, the intraday minute chart generally has the following characteristics:

1. The volume is chaotic, with non-stop movements of increasing volume throughout the day, and whether it's pulling up or killing down, it releases huge amounts. This indicates that the main force is no longer controlling the stock price by knocking on the chips in their hands, but is actually making selling actions.

2. In the time-sharing chart, there is a terrifying diving waveform, where a wave of diving kills the stock price by at least 5 points, and when a diving occurs, it carries a huge amount. After the plunge, the stock price did not have the motivation to return to its original position in a short period of time.

3. The moving average system of the day creates great pressure, and after a plunge, it is almost difficult to stand on the moving average again. Even if there is a false pull that breaks through the moving average during the day, as long as it breaks through the moving average, there will be a large number of selling orders, which will once again drive down the stock price, making it impossible for the stock price to even sideways on the moving average.

4. If there is a sharp decline on the same day and a historical high volume is released, the possibility of the main force selling at full capacity is even greater.

Secondly, it is important to observe the different distribution of chips during the washing and shipment of the daily candlestick chart

If it's a wash, usually around 10% of the chips at the bottom will sink below and not move upwards; And for shipment, almost all the chips at the bottom have been moved to the new chip distribution area.

If it's a spin off, the main force will build a new platform to prepare for the next effort; And for shipments, the low point keeps moving downwards, creating a continuous trumpet shape.

How to determine whether to focus on washing or shipping?

1. When the main force washes the market, OBV and the average volume line, which are the main indicators for analyzing changes in trading volume, will also show some obvious characteristics. The main manifestation is that when there is a large negative volume, the 5-day and 10 day average volume lines of the stock price always run upwards, indicating that the main force has been increasing its holdings and trading is active. In addition, the quantitative indicator of trading volume, OBV, remains upward during periods of high volatility in stock prices, and even if it suddenly falls back, it will quickly rise and create a new high in the near future. This indicates that from the perspective of quantity and energy alone, the stock price has the conditions to rise.

2. Due to the active involvement of the main force, previously dull stocks have become active under the significant increase in trading volume, resulting in a trend of price increase and volume increase. Afterwards, in order to clear the obstacles for a significant increase in the future market, the main force had to forcefully wash away short-term gains, which often manifested as a fluctuating pattern of yin and yang on the candlestick chart. Due to the main objective of driving out ordinary investors, the K-line pattern of stock prices often becomes a clear "head pattern".

3. In the main market washing stage, K-line combinations often have a continuous bearish trend, with the majority of times closing negative. Each time the market closes negative, there is a huge trading volume, as if the main market is selling heavily. In fact, upon careful observation, it can be found that when there is a huge bearish trend, the stock price rarely falls below the 10 day moving average. The short-term moving average provides strong support for the stock price, and the signs of the main force's low-level replenishment are clear at a glance.