The Classic Tactics of Market Makers Revealed
Four-Stage Model for Positive News Implementation
1. Incubation Period (Before the Announcement)
On-chain Data: Main Addresses Accumulate 1-3 Weeks in Advance
Technical Form: Low Volatility + Continuous Decrease in Volume
Typical Performance: Sudden Large OTC Buy Orders Appear
2. Speculation Period (At the Announcement)
Price Characteristics: Surge of 20-50% Within 30 Minutes
Media Actions: Worldwide Push of Positive News
Retail Investor Behavior: FOMO Emotion Peaks
3. Distribution Period (After Positive News Materializes)
Net Inflow to Exchanges Surges
Large Sell Orders Split for Execution
Community Begins to Call Out 'Target Prices'
4. Harvesting Period (1-3 Days Later)
Price Crashes 15-30%
Liquidation Volume Reaches 5-10 Times the Usual
Positive News is Discredited
Latest Case Studies for 2024
1. May ETH Spot ETF Speculation:
Pre-Announcement Surge: +38% Two Weeks Before the News
Announcement Day: +25% in a Single Day
Subsequent Trend: Continuous Drop of 21%
2. March AI Concept Coin Craze:
Before the Press Conference: 180% Increase in 7 Days
On the Day of the Event: High Open Low Close -40%
Two Weeks Later: Drops Below Initial Rise Point
Counter-Harvesting Strategy
Sell Timing Judgment Table
Signal | Danger Level | Action Recommendation
Positive News Surge > 50% After Announcement ★★★★★ Immediately Reduce Holdings by 50%
Sudden Net Inflow to Exchanges ★★★★☆ Start Gradual Profit Taking
RSI Overbought + Volume-Price Divergence ★★★★ Open Hedge Position
2. Margin of Safety Formula
Maximum Position Size = (Price Increase Before Positive News × 0.3) / Current Volatility
Example: Increased by 50%, Volatility 5%
= (50×0.3)/5 = 3% Position
Four, Decoding Market Maker Operations
1. Classic Harvesting Action Line:
Informed Parties Accumulate → Media Creates Hype → Price Rises and Distributes → Retail Investors Take Over → Negative News Released
2. Interpreting Market Language:
Sudden Appearance of 999 BTC Buy Orders: Inducing Buying Signal
Continuous Sale of 100 BTC Small Orders: Main Player Distributing
Asymmetrical Buy/Sell Depth: Imminent Change in Trend
In the upcoming market, don't chase hard; operations still matter. After all, failing to earn money is foolish. Manage your position well and don't be a bag holder!
Remember:
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