Here are some common techniques used by market makers to build positions:

1. Horizontal warehouse construction

Horizontal position building usually occurs after a long-term decline in stock prices. The market makers secretly attract funds at low levels. As long as there are sell orders in the market, the market makers will take them all, but as long as the stock price rises slightly, the market makers will use large orders to suppress the stock price. Therefore, the stock price fluctuates within a narrow area for a long time, forming a horizontal consolidation pattern. Many retail investors have lost patience due to prolonged sideways trading of their chips and are cutting their meat to chase after strong stocks, while market makers take the opportunity to quietly attract them

Acquire these cheap chips and gradually complete the warehouse construction work. The time for this horizontal position building usually takes more than 3 months, some as long as six months or even longer. During the sideways fundraising period, although the daily trading volume is not large, the cumulative trading volume is very considerable. Once this stock is launched, its upward trend is often astonishing.

2. Pull up warehouse construction

Pull up style position building mostly occurs in obscure stocks, stocks that have been declining for a long time, or stocks with significant underlying themes. When the market maker builds a position, the stock price quickly rises from a low level, and the trading volume rapidly increases. This method of trading space for time to build a position indicates that the market maker has strong strength and fierce style, and there will be huge upward space in the later stage.

There are generally two situations for building a warehouse with a pull up style:

(1) One step approach. After the intervention of the market maker, the stock price rapidly rose from a low level, and even used the limit up board to force short positions and build positions. After the stock price reaches a relatively high level, it forms a consolidation trend such as a platform, flag, or triangle. At this time, retail investors often sell short-term profit orders and early lock up orders, while market makers quietly accept the chips sold to reach the opening day.

(2) Continuous pull-up style. After a long-term decline in stock prices, a bottom gradually forms, and investors develop a reluctance to sell mentality, making it difficult for market makers to collect enough chips at the bottom. In order to attract funds as soon as possible, the market makers continuously raised the stock price, causing a steep upward trend in the daily K-line and a high divergence rate. At the same time, the market makers create a volatile trend, triggering retail investors to sell while the market makers secretly attract funds.

3. Box type warehouse construction

Market makers use this method to build positions, and the stock price trend often shows long-term fluctuations within a box. When the stock price rises to a certain high point, there will be selling during the trading session, causing the stock price to fall back. However, once the stock price falls to a certain low point, buying activities will intervene during the trading session, causing the stock price to rebound. In terms of trading volume, it generally manifests as an increase in trading volume when the stock price rises, and a decrease in trading volume when the stock price falls. If a stock oscillates up and down within the box more times and has a shorter period, it proves to be a stock with higher reliability. Sometimes, during the fluctuation process, sudden increase in trading volume or abnormal increase in single transaction volume are signs of active buying by the market maker. By using this method to build a position, the banker can often control their own building costs within a specific range.

4. Rebound building

Due to the inability of the banker to attract enough chips at the bottom, a rebound style position building strategy was adopted to save time in attracting chips. This is the market maker taking advantage of investors' psychology of "selling high and buying low", "grabbing rebounds and selling", and "losing weight at high prices" to gain chips and quickly complete the position building task. After the rebound is in place, the banker generally adopts the following two strategies to attract funds:

(1) After rebounding, it falls back. In order to trigger more selling, the market makers will suppress the stock price every time it rebounds to a certain height. After several iterations, retail investors have formed a fixed mindset of "selling when the stock price rebounds to a certain level, and then picking it up at a low level". But after the last rebound, the stock price did not fall back, but went straight up. Retail investors regret throwing away their chips and end up chasing higher prices. During the process of building a warehouse, the K-line chart will show bottom shapes such as double bottoms and composite head shoulder bottoms.

(2) After rebounding, it turned sideways. After the stock price rebounded to a certain level, it did not follow the market's correction, but instead showed a long-term platform consolidation trend. Investors have the idea of selling high and buying low when they see the market weaken. For the chips sold by investors, the market makers will take them all.

5. Pressure based warehouse construction

The market maker used the existing chips in their hands, regardless of cost, to significantly lower the market, causing the stock price to continuously decline and causing retail investors to completely collapse psychologically, cutting their positions and being eliminated. The market maker then accepted all orders. Some market makers even take advantage of the deep correction of the market, the downward breakthrough of stock prices, or the bearish trend of individual stocks to suppress and build positions, which has a more significant effect.

Suppression style position building cannot be used arbitrarily. If the market is in a bull market and the stock price maintains a strong upward trend, suppressing position building at this time will only give investors the opportunity to buy on dips.