Understanding the Control Techniques of Major Players Before Rallying

1: Major players use their chip or capital advantages to deliberately suppress prices through methods such as wash trading, creating an illusion of price decline, causing panicked retail investors to sell. Meanwhile, the major players take the opportunity to quietly absorb cheap chips at low levels.

2: Major players conduct long-term sideways consolidation within a relatively narrow price range. During this process, they control the price volatility by continuously buying and selling, wearing down the patience of retail investors. Those who lack conviction may sell due to the absence of hope for rising prices, while major players secretly collect these chips.

3: Major players quickly sell off large quantities in a short period, creating the illusion of an impending crash. This sudden drop can cause retail investors to panic and sell out of fear, and major players can absorb these sell-offs at lower levels, achieving the goal of clearing floating chips and reducing subsequent upward pressure.

4: During a slight price increase, major players create fluctuations by intermittently suppressing prices. This makes retail investors mistakenly believe that the upward momentum is weak or that a top is forming, leading them to sell. Through this method, major players can clear out some weak hands and further collect chips during the fluctuations.

5: Major players quickly raise prices with a small amount of capital to observe the selling pressure above. If the selling pressure above is light, it indicates that the resistance is low, allowing for relatively low costs in subsequent rises. If the selling pressure is heavy, major players may need to further clear floating chips or adjust their rally strategy.

6: Major players intentionally suppress prices to observe the buying strength below. If there is strong buying support below, it indicates that many investors are optimistic about the stock's future, which major players can leverage during subsequent rallies. If the buying strength below is weak, major players may need to stabilize the bottom first, commonly referred to as bottoming.

7: After major players have accumulated a certain amount of chips, they will lock in a portion of these chips to reduce the number of circulating chips in the market. This way, they can lower the cost of subsequent rallies and better control the trend. Major players often reach agreements with long-term investors or institutions to hold onto stocks without selling, or they may lock in positions by holding a certain proportion of chips for the long term.