Share 4 hidden K-line signals from the market makers and learn to avoid 50% of the pitfalls!
1. False Breakout: The 'Previous High Trap' Set by Market Makers
① Characteristics: The price quickly falls back after touching the previous high, and the trading volume shrinks compared to the average of the previous 3 days (rather than expanding), akin to 'hanging a false light' to lure in buyers.
② Key Distinction: A true breakout requires volume and price to move in sync, with volume reaching at least 1.5 times the average of the previous 3 days; a false breakout only 'touches' the previous high, with weak volume.
2. Yin-Yang 'Washout Needle': Manipulation of Market Sentiment by Market Makers
Core Focus on Position: When a support level (e.g., MA60) shows a 'Yin Needle + Yang Needle', it is a signal from the market makers testing panic selling; at a resistance level (e.g., previous high), when a 'Yang Needle + Yin Needle' appears, and the volume of the Yin Needle expands (e.g., doubles), it indicates a lure for selling.
3. Long-term Sideways Movement: The Market Makers' 'Hawk Watching' Accumulation Technique
① Misconception: Sideways movement does not mean there is no market activity; rather, it is a method for market makers to exhaust retail investors' patience, with the direction often revealed at the end of the sideways movement.
② Technique: If the sideways movement lasts more than 15 days, the strength of the breakthrough afterward is greater; a true breakout requires both price and volume to rise, while a false breakout shows price increase with shrinking volume (market makers 'drawing a door').
4. Sharp Top vs. Rounded Bottom: Signals of 'Selling' and 'Accumulation' by Market Makers
① Sharp Top (Selling): A rapid rise and fall create a 'sharp knife' shape, often accompanied by extremely high volume (trading volume exceeding three times the usual), leaving little time to exit.
② Rounded Bottom (Accumulation): A slow grind upwards creates a 'rounded pot' shape, requiring low volume (trading volume reduced to below 50% of the average of the previous 3 months).
Final Reminder: K-lines are the 'footprints' of market makers. While these formations are not 100% accurate, mastering them can at least help avoid half of unnecessary losses. Now, by opening the K-line chart for comparison, you can discover signals you may have previously missed. The cryptocurrency market is a game of predator and prey; understanding the 'subtext' allows you to be less harvested and more proactive.
