Due to long-term association with the stock market, during the long-term trading process, the author found that the main force's way of pulling up is closely related to the direction of the market in the later stage and how many positions the main force has built in the early stage. If the future market develops into a clear bull market pattern, the main force will be willing to use more funds to build positions, thereby buying a large number of stocks and forming a higher level of control. Once the main force forms a high control state over the target stock, it means that the number of stocks circulating outside will decrease accordingly, that is, the larger the main force's holdings, the fewer stocks circulating in the secondary market. Therefore, as long as the main force reaches the control state, regardless of whether the stock price rises or falls, the trading volume will be very small, especially when the stock price rises. Investors are even more reluctant to sell their stocks, and the main force will not easily sell their chips until the stock price reaches the predetermined target price, after all, it is difficult to attract so many chips. When both the main force and individual investors are unwilling to sell their stocks, the process of stock price resistance will result in an infinite rise. This process of unlimited increase is called the technique of reducing quantity and raising price, or the method of locking up and raising price.
Let's illustrate with an example that Figure 1 shows the trend of 000736ST's stock price rising from November 2006 to April 2009 using the volume reduction (lock up) technique. In the chart, we can clearly see that during the period from November 23, 2006 to October 19, 2007, the trading volume did not increase. The largest trading volume on the day (November 27, 2006) was only 7313 shares, with a turnover rate of only 2.8%. In the subsequent one month rally from December 26, 2008 to February 1, 2009, there were only three days with significant turnover, namely February 11, February 12, and February 17, 2009. The rest of the month long rally showed a daily contraction trend. And the volume released on February 17, 2009 was also intentionally traded by the main force, with the aim of luring profitable investors to sell chips, achieving the purpose of clearing the market, and clearing obstacles for higher goals in the later stage. The later reduction in volume and increase in volume proved the correctness of this judgment. Throughout the entire upward trend, the stock rarely showed a bullish candlestick for large entities, but the overall increase in stock price was still significant, with a cumulative increase of over 300%.
Let's take a look at 002030 Daan Gene. During the one month rise from November 2008 to April 2009, the stock price increased from over 4 yuan to over 12 yuan, and the overall increase was also very huge. However, the volume could not be amplified throughout the entire rise process. Even during the adjustment caused by the large market crash from February 17 to February 27, 2009, the volume remained at a reduced level. Only on April 28, 2009, 262542 shares were released in one day, but the turnover was only 13.70%. What does this mean? It indicates that the main force does not want to spend too much time on washing out the market. It shows that the main force wants to continue to be long during the trading session. It also indicates that the main force holds chips that can manipulate the stock price, with no fear of holding, allowing for easy upward movement and washing out. What is the nature of this holding quantity - highly controlled. In the chart, we can see that including every time the stock price reaches a new high and the adjustment from February 17 to February 27, 2009, the trading volume has not increased. The volume can tell us that the stock has not experienced a large amount of selling, whether it is rising or falling. This trend is the most obvious technical feature of volume reduction (lock up) pulling up. The main force locks a large number of chips in their hands and can drive the stock price up with very little capital. Figure 2