🔥A Visual Guide to the Purpose of the Dealer's Washout

1⃣ Many people have misconceptions about the dealer's washout behavior. They believe that the dealer's washout is solely to take the chips from retail investors. In fact, the dealer's washout itself is not purely to acquire retail investors' chips.

More often, it is to reduce selling pressure during an upward trend, lower operational costs, and facilitate subsequent rises and successful offloading at high positions.

2⃣ Of course, there are many other washout operations by the main force. For example, limit-up washouts, limit-down washouts, and rally washouts—there are many, many more. However, just remember one thing: do not casually discard the chips at the bottom.

3⃣ The main force's capital cost is very high, and it is generally leveraged. Therefore, the longer the washout lasts, the higher the time cost, which will lead to higher prices.

By looking at chip concentration, turnover rate, volume accumulation, and chip cost, we can estimate the main force's cost. They definitely do not want to spend time losing money, so follow their pressure, accumulate, and adjust your strategy with high selling and low buying while waiting for the rise.