What is "Peeling Onions" in Short-Term Trading?

"Peeling Onions" is a commonly used metaphor in short-term trading, meaning: the release of market sentiment is progressive and won't happen all at once.

For example, when a high-priced stock declines, it won't immediately hit the limit down, but rather:

1. First layer: gradual decline, some funds leave first;

2. Second layer: failed rebound, the market begins to be alert;

3. Third layer: accelerated decline, panic sentiment erupts;

4. Fourth layer: concentrated sell-off, sentiment is completely released.

Each layer is a form of "emotional filtering"; only by peeling to the end can one possibly find the bottom or the top.