Before the main force rises, it is necessary to wash out low-level trend following stocks, making the cost of ordinary investors higher than oneself. The purpose of main force washing is to eliminate shareholders who follow at low levels and allow new funds to enter the market. By changing hands, the holding cost of ordinary investors can be raised to alleviate the selling pressure during the rise process. In the process of market washing, traders usually disrupt the technical chart, or make significant fluctuations, or decrease in volume, or rapidly rise and fall, as well as use various means such as large orders to pressure the market, in order to achieve the goal of market washing.

Banker's washing technique

Market makers wash their stocks in order to scare out retail investors who lack confidence, so they will inevitably create a weak market image, and even fiercely suppress them in a diving style, giving people the illusion that everything is over, and only then will they sell their holdings in fear. It's interesting that in key technical positions, market makers often protect the market. Why is this? The answer is simple, the banker wants another group of people who are optimistic about the future to hold shares in order to increase the average holding cost. So how can we avoid being washed out by the banker? Firstly, we need to understand the banker's washing techniques. The washing techniques commonly used by traders include:

1. Limit down wash method

This washing technique is most commonly used by market makers, who are quick and vicious. After negative news is released, they quickly suppress the stock price, creating market panic. When everyone chooses to leave in despair, the upward trend is also approaching.

Core: Market makers use negative news and limit downs to shake off retail investors who follow the trend. If the market enters a phase of shrinking volume and sideways consolidation after the stock price falls to the limit, it indicates that the main force has not fled and is waiting for an opportunity to pull up prices

2. Yin line washing method

Due to the varying holding costs and scattered chips of individual investors, the market makers will use a large volume bearish candlestick to create a weak market trend for the following stock. After the one month adjustment period, the stock price will continue to rise!

Core: In fact, this kind of market washing technique by market makers is relatively easy to identify. During the washing process, they usually show a large volume, but the stock price does not fall too much. Then, they enter a period of volume reduction to consolidate the market, which often indicates an immediate rise.

3. Limit up breakthrough method

After the stock experienced a significant decline, the market makers pulled out the daily limit up, attracting the attention of retail investors. However, in the following 3-6 trading days, the stock price continued to decline, and retail investors couldn't resist the torture and left one after another, achieving a high buy low sell operation. When retail investors sold their chips one after another, the market makers began to rise sharply.

Core: This type of candlestick trend is very common and often reduces the cost of the next bullish move for the market maker.