During the rising process, especially when experiencing continuous rise, if there is a sudden shrinkage and huge drop, should we run? We can analyze it in depth from the perspective of the dealer.
The price of the currency started to rise from the dealer's entry and shrinkage, which successfully attracted the followers of the leeks. After rising for several consecutive days, there was a sudden shrinkage and huge drop one day.
1. Market performance analysis
First, the shrinkage and large drop indicate that the selling orders are highly unified. So, is it possible that the high unity of the selling orders is that retail investors suddenly work together and sell at the same time? This possibility is very small. The sudden concerted efforts can only mean that the dealer deliberately did it.
2. Speculation of the dealer's intention
The dealer deliberately shorts, and its purpose is to confuse retail investors and prompt them to quickly throw away their chips. In this way, the dealer can pick up chips at a low level and prepare for the subsequent continued rise. On the other hand, if the market continues to fall after a sudden decline in volume, will the dealers rush to sell the large amount of money invested just to attract a small wave of retail investors after the start? In this case, the leeks cut are too few, so what is the dealer trying to do?
Therefore, during the rise, especially during continuous rise, if you suddenly encounter a large decline in volume, you should definitely not run. If there is still room for positions, you should even increase your positions at the low point of the market crash.
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