The process of making a stock by a market maker includes five stages: trial trading, fundraising, volatile market washing, upward movement, and selling. The first three stages have gone through for a relatively long time, and few retail investors have the patience. After the washing up is over, it may double after a few days of upward movement. How can we find the main players to complete the washing process and keep up with the pace of the market makers. Next, the author will give you a systematic explanation!

1、 Prelude to Banker's Clearing

Firstly, profitable retail investors have a motivation to take profits for safety. The more profits they make, the stronger this motivation becomes. By washing the market, they can drive down those who have already made profits but are prone to shaking, and encourage bullish investors to enter the market. Due to the high cost of latecomers, they will not easily sell stocks, which reduces the pressure of profit taking during future rallies.

Secondly, if the top to bottom washing method is adopted, high selling and low buying benefits can be obtained, which can further reduce the holding cost of the market makers and also withdraw funds for the next step of boosting.

Thirdly, strengthen the confidence of individual investors in holding stocks, make those who wash out stocks regret it, and let those who hold onto stocks taste the sweetness. In the future, when market makers sell stocks, individual investors may also consider it a wash out and hold onto stocks, providing more spacious channels for market makers to sell.

Fourthly, there are similarities in form between liquidation and shipment, which makes it difficult for inexperienced retail investors to distinguish between liquidation and shipment. They mistake shipment as a correction and a replenishment century, preventing existing shareholders from appearing and allowing market makers to successfully escape. Therefore, washing dishes also has the function of smoke bombs - to cover up future shipments from the market makers.

2、 Banker's washing characteristics

1. Staring at the market, one can see a very obvious drop in large orders, and there is a slight rebound on the intraday chart with large orders falling down, or even consecutive large orders falling down. It is a bit of a reckless attitude that makes people confused and panic.

2. During the liquidation period, the trading volume significantly decreased, which may be due to the fact that the market makers have already locked in most of the chips, and only floating stocks have been washed out.

3. The trend after washing out the market will be completely independent of the overall market, and the washed out funds should immediately chase higher. Of course, the premise is that the judgment is accurate. This is a wave of market washing, not a false bullish trap of breakthroughs.

4. Stocks with significant increases in the later stage often undergo multiple washouts, and the more such stocks are, the more attention should be paid, as this means that they will usher in a major upward trend in the later stage.

5. From the trading volume of each wave of washout process, it can be seen that a moderate upward trend is accompanied by a large trading volume in the early stages, indicating that retail and short-term investors are active in trading and frequently enter and exit. But as the shares gradually increase, the trading volume of the later stage of the liquidation will become smaller, indicating that the chips gradually become concentrated and the degree of lock up is very high.

6. The digging and washing method usually does not stay at a low position for too long.