Lao Lei, an experienced stock trader from Ningbo, has been in the market for over 10 years. Based on his years of experience in stock trading, Mr. Lei has never been trapped in stock trading and has independently developed a set of practical strategies that recognize the skills of market makers.
（1） The secret to keeping an eye on market makers for changes in trading positions
This is the market data that the banker cannot hide. Market makers can use stock price trends to carefully "plot" technical indicators, but due to the large volume of market entry and exit, such as operating on the usual trading volume of individual investors, a long entry and exit cycle will cause delays and lead to market failure. If the average transaction volume suddenly increases, there must be a banker involved. As for the direction and purpose of the banker, it needs to be analyzed in conjunction with other specific situations.
1. Psychological warfare of hanging orders
Placing large buy or sell orders in buy or sell orders is purely a method used by market makers to guide stock prices in a certain direction. Once the goal is achieved, the pending order will be cancelled. This is also a common technique used by market makers to guide stock prices. When a large order is placed in the buying market, individual sellers may experience psychological pressure. Will buying in such a large order still cause the stock price to rise by one line? On the contrary, when selling and placing large orders, individual buyers will hesitate. The battle of wits and courage lies in the market, and individual investors only need to be bold and careful, not panic when faced with problems, have firm beliefs, and temporarily die and follow the village.
2. Show sincerity in both internal and external markets
Internal trading refers to the transaction volume at the buying price, which is the seller's transaction volume.
External trading refers to the trading volume based on the selling price, which is the buyer's trading volume. As long as the banker enters and exits, it is difficult to escape from the internal and external market. Although it may temporarily confuse people with the use of counter trading, the influx and outflow of a large number of chips by the market makers will inevitably be revealed from both internal and external trading.
3. Hidden Plate with exposed horse feet
In the market, the hanging orders placed on the buying and selling market are often a false impression used by the market makers to deceive people. A large number of selling and hanging orders are commonly known as top cover plates, while a large number of buying and hanging orders are commonly known as bottom pallets. The true purpose of the market maker's buying and selling orders is usually timely transactions, and although hidden orders cannot be seen in the buying and selling orders, they cannot run during the trading orders. Therefore, studying the relationship between trading and pending orders in hidden markets can reveal the true face of the market makers.
4. Pan Kou Secret
(1) There is a cover plate on top, but a large number of hidden external markets appear, and the stock price does not fall, which is a precursor to a significant increase.
(2) There are pallets underneath, and a large number of hidden inner plates appear, indicating the dealer's shipment.
(3) The external market is larger than the internal market, and the stock price does not rise. Beware of market makers selling.
(4) The internal market is larger than the external market, and the price drop has increased. For the second consecutive day, this is the last opportunity for discerning individuals to ship.
(5) Both the internal and external markets are relatively small, and the stock price has slightly increased, which is a lock in chip for the market makers. When gently pushing up the stock price.
(6) The external market is larger than the internal market, and the stock price is still rising, looking at the top line.
(7) If the internal market is larger than the external market, and the stock price does not fall or rises slightly, there may be market makers entering the market.
（2） Three moves to determine if the main force has fled!
It has become very important for small and medium-sized investors to determine whether the main force has fled. So, how to determine if a stock's main force has not fled?
Firstly, the trend always rises sharply with small fluctuations, and the bottom continues to rise. This identification method is an important technical tool, and there are three ways for stocks to operate: up, down, and sideways. The important identification method for a stock where the main force has not been eliminated is that any new low formed by a decline will not be lower than the second lowest position in the previous period. Any market maker washing the market will not wash through the bottom of the market. This is a problem that must be clearly understood, and it also indicates that the main force does not allow the market cost to be lower than its own holding cost, otherwise it should be understood as the main force running away at no cost.
Secondly, the medium to long term moving average system must be a bullish arrangement. The intention is that a good technical form is conducive to the long-term protection of the main capital, which is conducive to the rise of individual stock prices, easy to establish a good market reputation, and active trading in the market. Only then can it be conducive to the main force's shipment and distribution. It is hard to imagine how difficult it would be for the main force to build a stock with imperfect technical form, except during the liquidation stage. Even if it falls below an important technical position, the main force will effectively recover in the near future.
Thirdly, the overall trend is stronger than the overall market. Simply put, when the overall market rises, individual stocks tend to increase more than the same period. However, when the overall trend is bearish or downward, it is replaced by sideways or slight adjustments.
The above three points are the basic tricks for identifying that the main force has not been eliminated. Of course, other methods of summarizing in the past, such as trading volume (turnover rate), trend lines, whether there is a depletion gap, the size of short-term stock price increases, whether market news is bullish, etc., are all auxiliary identification methods. Considering that the main market tactics are bizarre and varied, the most effective identification methods should be the above three points.
As long as the above important identification methods have not changed, investors may as well allow the main force to shake up and wash up their positions, and welcome the emergence of new highs in strong stocks with peace of mind.
（3） Revealing the Banker's Attracting of Goods
The main methods for major players to build warehouses are as follows:
1. Concealed suction of goods, without showing any signs or emotions. The trend of such stocks is mostly unpopular at the current stage, undergoing box consolidation at lower prices relative to their past, consistent with the overall trend of the market, with low trading volume. Therefore, in the stage of building a position, it is best not to let people notice that there is a large amount of capital involved. In terms of operation, it is not advisable to buy with a big hand and clear hands. Instead, it is necessary to break down the large capital. For institutional main players with large amounts of capital, the relative time for building a position will be longer. Therefore, sufficient patience and endurance are also necessary, because the more chips they buy at the bottom, the lower the cost of building a position. Usually, the longer the consolidation time at a low level, the greater the future increase. Investors in this type of stock only need to pay attention, there is no need to get involved and be patient with the market makers.
2. Shake to build a position, up and down. Due to the difficulty in determining the low point at the bottom, and the fact that large funds cannot all absorb chips at the lowest point, large funds begin to build positions in batches after entering the bottom area, buying more as they go lower. Due to the difficulty of not raising the stock price during the process of building a position, but at this time, either the chips have not been fully absorbed or the time to raise them has not yet come, it is necessary to lower the stock price again with a small amount of chips, and even create panic, liquidation, and stop loss orders. When individual investors become disheartened, it is time to launch an attack after a large amount of fundraising has been completed.
3. Pull up the suction and grab chips. When sudden major positive news is announced or the stock price is extremely overvalued, and there are no major players in a certain stock or individual investors are hesitating, large group funds often take the initiative and buy a large number of low-level chips on the same day, even if it means raising the limit up. The warehouse building task can often be completed in a few days or hours. Often, large cap stocks exhibit the following characteristics in the later stages of market makers' position building:
(1) The K-line combination will form an obvious box, and the frequency of stock price fluctuations in this box will begin to increase. Usually, when the stock price rises, the trading volume increases, while when the stock price falls, the trading volume noticeably shrinks. For example, from October 1998 to March 1999, the stock price of Handan Iron and Steel (600001) fluctuated within a box price range of 7-8 yuan, with an increase in price increase and a decrease in price decrease, which was a clear main feature of attracting goods.
(2) In a sluggish stock market, it will show a certain resistance to decline and often have a downward shadow. Whenever the market breaks below a certain level and declines, it becomes a great opportunity for the main force to absorb low-priced chips, thus demonstrating good resistance to decline.
(3) From the perspective of technical indicators, there is a phenomenon of bottom deviation. For example, the energy wave OBV curve is sideways at the bottom or has slowly risen, while the stock price is only fluctuating horizontally or even falling. At the same time, there is a horizontal candlestick combination of more than 5 weeks on the weekly candlestick chart, with alternating yin and yang, and both RSI and KDJ indicators show a double bottom or bottom divergence phenomenon. During the buying phase, the short-term trading volume moving average (5-day moving average) tends to gradually climb upwards. When it crosses the long-term trading volume moving average (10 day moving average) upwards, it indicates that there are few upper bound floating codes, and multiple parties have begun to organize forces to counterattack, forming buying points immediately.
(4) There have been some rumors circulating in the market about the stock, but the stock price and trading volume have hardly responded, and sometimes they may even experience a slight decline for a few days.
(5) In the later stage of building a warehouse, the banker actually has no way out, he has to do it if he doesn't do it. If the fundamentals are hit by a significant negative impact at this time, it would be the best thing for us. It's a heaven sent opportunity, a chance to get rich. Most market makers will counterattack even more fiercely after the limelight has passed.
(6) The task of the market maker in the later stage of building a position is to maintain the stock price and wait for the appropriate opportunity to initiate a rise. The date of the upward trend is usually calculated backwards by the market makers, such as the date of contract signing of listed companies, the date of release of interim and annual reports, the date of convening shareholders' meetings, etc. Generally, it is necessary to reach the target level of the upward trend before and after the information is announced. Therefore, the release of the news is a sign of the market makers' shipment, of course, this refers to after the stock price has already risen significantly. It seems that most of the information is controlled by the banker, and there are countless examples of this.
（4） Introduction to the Shockwave Trading Technique of Market Makers
The market makers have a large number of troops and a strong lineup. It is not a one-day effort to quietly enter a certain stock. The stock proverb goes, 'One day at the top, one hundred days at the bottom.' Often, it is necessary to oscillate repeatedly at low levels, or a long-term sideways trend may make short-term investors unable to bear loneliness and seek new love; Either jumping up and down to lure retail investors to sell low and buy high, or rising for a day and imitating a small footed woman walking for half a month, which is unbearable and ultimately leads to a respectful distance. After such clever and aggressive grabbing, the chips of individual investors have quietly flowed into the warehouse of the market makers. This oscillation style position building technique can be further divided into the following types on the trend chart:
1. Horizontal plate type. This technique refers to the situation where the dealer immediately takes over all the sold orders at a certain price point. At this point, the dealer only lets the horse bury its head in grass and does not let it look up to see the road. If the stock price slightly rises, the dealer will hit it with a stick. If there is a price pressure to sell, the dealer will take the opportunity to buy cheap goods. On the weekly chart of Shenyang Rural Credit Cooperative (550511), the fundraising period is like a straight line, with 90% of transactions concentrated in a narrow area between 1.9-2.1 yuan. At this moment, stocks are not only resistant to decline, but also resistant to rise. Others hold a chorus of limit up, but it remains silent; Others are rushing to stop falling and lose weight, but it remains unchanged. At this moment, the horse is indeed completely black, which is difficult for ordinary people to notice, but upon closer observation, clues can also be found: the candlestick chart shows alternating yin and yang, and even multiple cross stars appear Cunning foxes always leave some traces, and trading volume is the tail that the banker cannot hide. Generally speaking, when the banker buys goods, the trading volume is relatively even, or shows a typical trend of increasing volume when rising and decreasing volume when falling. Based on the transaction, we can determine when the banker will enter and what their strength will be, and thus roughly estimate the extent to which the banker may rise.
2. Box shaped. Stocks that fluctuate at a low level and attract goods have a stock price trend that is like a ping-pong ball inside a box jumping up and down. The market makers are now bowing left and right, acting as both buyers and sellers. When the price falls, they attract, and when the price rises, they use large singles to buy. On the minute chart, the stock price usually rises slowly after a sharp drop, and the amount of increase gradually increases. The banker adopts a two handed policy of using a big stick and carrots, sometimes using small favors such as a small bullish candlestick to entice sellers, and sometimes using a big stick such as a bearish candlestick to force them to sell their chips.
3. Low level overweight type. After the market maker pushes the price up one step, if the market weakens, the market maker cannot resist the rush of selling and has to fight and retreat. When the air force is exhausted, the dealer will mobilize heavy troops and prepare for a battle of annihilation. Such stocks often have great potential for the future. From the outside, this stock appears calm and peaceful, but little did they know that there are already a million strong soldiers of the market makers lurking inside. Absorbing goods is like brewing wine, and the longer it is brewed, the more fragrant and mellow its taste becomes.
Retail investors should pay more attention to some abandoned stocks in the market, especially those stocks that have been ignored for a year or so. They are all covered in black, with black noses, black eyes, and black skin. If they hide in black corners, at first glance, they may think they are sick cats. Don't stare at the top ten of the price increase list every day, that's someone else's wife, it's all for nothing. Secondly, pay attention to the first bullish trend that appears after a long period of sideways trading. At this time, it is often the sound of the banker's horn to charge forward, and it is also a great opportunity for us to snatch money from the banker, indicating that the banker is exploring the market. Retail investors should prepare an iron hook at this time to firmly hook their small sampan onto the banker's aircraft carrier.
