Revealing the Classic Tactics of Market Makers
Four-Stage Model of Positive News Impact
1. Incubation Period (Before News Release)
On-chain Data: Major Addresses Accumulate 1-3 Weeks in Advance
Technical Patterns: Low Volatility + Continuous Decrease in Volume
Typical Behavior: Sudden Large OTC Buy Orders Appear
2. Hype Period (At the Time of News Release)
Price Characteristics: Surge of 20-50% Within 30 Minutes
Media Actions: Full Network Push of Positive News
Retail Investor Behavior: FOMO Emotion Reaches Peak
3. Distribution Period (After Positive News Materializes)
Net Inflow to Exchanges Suddenly Increases
Large Sell Orders Split into Transactions
Community Begins to Issue "Target Price" Calls
4. Harvest Period (1-3 Days Later)
Price Plummets 15-30%
Liquidation Volume Reaches 5-10 Times Normal
Positive News is Disproved
2024 Latest Case Studies
1. May ETH Spot ETF Hype:
Preceding Rise: +38% Two Weeks Before News
News Release: +25% in One Day
Subsequent Trend: Continuous Drop of 21%
2. March AI Concept Coin Boom:
Before Press Conference: 180% Increase in 7 Days
On Event Day: High Open Low Close -40%
Two Weeks Later: Drops Below Starting Point
Counter-Harvesting Strategy
Sell Timing Judgment Table
Signal Danger Level Action Suggestion
Post-News Release Increase > 50% ★★★★★ Immediately Reduce Holdings by 50%
Sudden Spike in Net Inflow to Exchanges ★★★★☆ Start Gradual Profit Taking
RSI Overbought + Volume-Price Divergence ★★★★ Open Hedge Position
2. Safety Margin Formula
Max Position Size = (Pre-News Increase × 0.3) / Current Volatility
Example: Increased by 50%, Volatility 5%
= (50×0.3)/5 = 3% Position Size
IV. Decoding Market Maker Operations
1. Classic Harvesting Flow:
Insider Accumulates → Media Hype → Price Surge and Distribution → Retail Investors Buy → Negative News Released
2. Market Language Interpretation:
Sudden 999 BTC Buy Order: Signal for Inducing Buying
Continuous 100 BTC Small Sell Orders: Major Players Distributing
Asymmetrical Buy/Sell Depth: Imminent Change in Trend
Survival Rules
1. Three No-Principles for Positive News Trading:
Do Not Chase Already Surging Positive News
Do Not Trust Unverified Information
Do Not Engage in Trades Without Stop Loss
2. Smart Capital Response Strategies:
Preemptive Positioning (Ambiguous News Period)
Reduce Position by 50% Upon News Release
Set Trailing Stop Loss for Remaining Position
Remember:
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Follow the Right People, Earning Money Comes Naturally!
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