If the rapid rise of stocks can drive the entire concept stock to move together, it will inevitably trigger a profit making effect. However, even the strongest stocks have their moments of adjustment. The difference is that some stocks will continue to rise after adjustment, while others will experience a decline in stock price after adjustment. So how to distinguish between complex oscillations?

Today, I will share with you four classic ways of washing up the main players.

1、 Inertial pressure washing plate

After a long period of decline, the stock price slightly rebounded, but then the main players actively threw out chips to smash the market and force the stock price to fall. Investors who bought at low levels were worried about the decreasing profits and chose to settle down, obediently handing over their chips. However, the decline in stock price is less than one-third of the previous increase, and the duration is not too long. The habitual pressure washing method can quickly wash away investors who are not firm in holding funds.

2、 Wash dishes on the way

Due to the lack of chips in the hands of the main institutions but their strong funds, they are unwilling to waste time in the market washing process, so they choose to use a combination of upward and downward pressure. The main force adopts a large intraday oscillation every day to scare timid investors, with a combination of positive and negative candlesticks that efficiently wash the market while continuously pushing up the stock price.

3、 Form washing plate

This is a washing method that trades time for space, and the time is relatively long. The main force aims for the long term, so they need to obtain more chips. They are also concerned that quickly suppressing the stock price may lead to the loss of chips. Therefore, the main force takes a long time to grind down the patience of retail investors, gradually transferring chips to the main force. There are many forms, such as boxes, triangles, diamonds, etc.

4、 Short trap washout

When both the main institutions and individual investors are optimistic about the medium-term trend of the stock, but the main institutions are unwilling for individual investors to sit in the sedan chair. So, before the rally, extreme technical breakthrough measures were taken to intimidate retail investors into giving up their chips. For example, suppressing the stock price to break the 60 day moving average caused panic among retail investors, but the main force took advantage of the situation and absorbed all the panic chips of retail investors. The stock price does not stay below the 60 day moving average for too long, usually pushed back above the 60 day moving average by a medium to large bullish line or a continuous bullish line.

Finally, after the washout, the daily candlestick showed a significant decrease in trading volume, indicating that most short-term profit taking or lock up trades were driven out, leaving only dead long positions in the stock. As a result, the stock price was on the verge of rising. However, ultimately confirming the end of the market wash still requires the coordination of individual stocks, sector concept themes, and overall market trends.