How to Easily Distinguish Whether the Main Force is Washing the Plate or Distributing Goods? Four Indicators to Help You Understand Market Trends!
In the cryptocurrency market, the main force's plate washing and distributing goods are common operational techniques, but how can you quickly discern the true intentions of the main force? Today, we share four core indicators to help you see the market direction clearly and avoid being 'washed' out, missing profit opportunities.
1. Changes in Trading Volume: Washing Plate Shrinks, Distributing Goods Expands
Trading volume is the most intuitive signal! During plate washing, the main force usually deliberately reduces trading volume, using small fluctuations to scare off retail investors; while during distribution, the main force can infinitely supply chips, hence the trading volume will expand, making market transactions active. As long as you pay attention to changes in trading volume, the true market direction will be clear at a glance.
2. Stock Price Position: High Position Distribution After Washing the Plate
The main force generally starts washing the plate when the stock price has risen by about 30%, ensuring subsequent upward space while also collecting more chips. If the stock price increases by more than 60%, the main force is likely to start distributing goods, at which point the stock price usually shows a large volume at a high position, signaling increased risk. If you have a position, it is advisable to closely follow the main force's pace and withdraw in a timely manner.
3. Intraday Trend: Severe Fluctuation is Washing the Plate, Stability is Distribution
During washing the plate, the main force will induce unstable retail investors to sell at a loss through sharp rises and falls, causing severe fluctuations in the intraday chart. During distribution, the main force will keep the stock price stable, and the intraday chart will show a smooth trend, aiming to let the chips exit steadily. Therefore, observing the intraday chart's trend can help you judge whether the market is in a turbulent washing plate or the main force is distributing goods.
4. Chip Distribution: No Movement at the Bottom is Washing the Plate, Looseness at the Top is Distribution
During washing the plate, the main force accumulates chips at the bottom, and the chip distribution also shows a state of inactivity. At this time, the bottom chips are equivalent to the main force's 'ammunition', waiting to exert force at any time. Once the main force starts distributing goods, the chips will gradually loosen, and the distribution will gradually change. Understanding the details of chip distribution can help you accurately grasp the market rhythm.
