Volume Increase and Rise: The main characteristic is a high volume surge at a high position, or a large gap up followed by significant fluctuations. The essence is that it doesn't really rise much!
A volume surge or a large gap up will definitely attract some buying interest. We all know that the main players do not have just a small amount of stocks like retail investors that can be sold off in one go. This will create an illusion of market fluctuations, giving us the impression that the main players are accumulating shares in preparation for a renewed upward push!
It's like the story of the boy who cried wolf; after a few times of rising and then falling, retail investors will let their guard down, feeling that the market won't drop further, and will boldly increase their positions. For instance, after each rise and fall, the main players sell a portion of their stocks, and after a significant market drop the next day, they quickly buy back, creating a feeling that the market won't drop further! After this happens multiple times, everyone will ignore it, allowing for slow selling.
You might have a concern about how you can know what the main players are doing. Indeed, I also don't know; it's all speculation. However, when the market was at 25,000, I called for bottom fishing based on observing the main players as a reference. Currently, it seems that the market movement is not from new investors; those who have seen my previous posts should be aware of this. I'm digressing a bit; let's talk about the second characteristic!
The stronger it gets at the top: If the main players are selling off, how can it get stronger? This ties into a previous point. The main players have a lot of stocks and cannot sell them all at once like retail investors.
The main players are like actors; they need to maintain the price to give retail investors confidence, while also thinking about how to sell off their stocks. If they mishandle this and retail investors catch on, they might run away first, making it difficult for the main players to sell at a high price.
Therefore, they need to repeatedly push down and then pull back up, and even continuously create new highs to stimulate the highest desires of retail investors. This means that in the area where selling occurs at the top, the main players have to put on a strong performance.
Reflecting in the market trend, it feels very strong, and in terms of technical indicators, it will show divergences after fluctuations or continuous adjustments followed by new highs. This is the logic behind divergence and contradiction.
You need to stimulate the market a bit; a little stimulation yesterday afternoon accelerated the movement!