How does the operator wash the market, what are the methods of washing, mastering the operator's psychology, and not getting washed out is key to achieving big results. Today, I will explain it clearly in a long article, so take your time to read.
Generally speaking, the purpose of washing the market is to force out the weak-willed retail investors to prepare for a subsequent price increase.
The methods of washing can be mainly divided into:
1. Smash-type washing
Method: Suddenly placing a large sell order at the market, or directly smashing the market with a large order, driving the price down.
Characteristics: Significant drop in a short time, panic emotions, and sudden increase in trading volume.
Purpose: To force out panic sellers and stop-loss orders, filtering out the holders.
Operational details:
Quickly breaking key support levels, such as moving averages or previous lows, to create panic.
During the drop, buying back a portion at low levels.
Often accompanied by fake news and FUD (Fear, Uncertainty, Doubt) being released simultaneously.
2. Sideways oscillation washing
Method: Repeated sideways oscillation within a certain range to harvest short-term traders.
Characteristics: Price fluctuates slightly up and down, trading volume gradually decreases, and time is extended.
Purpose: To exhaust short-term funds, causing the impatient ones to sell.
Operational details:
Often quickly pulling back after a local rise, creating a “false breakout” to deceive both bulls and bears.
Letting holders feel “hopeless” for a long time, leading them to automatically sell.
3. Needle-type washing
Method: Suddenly dropping sharply within a very short time to form a long lower shadow, then quickly pulling back.
Characteristics: The K-line shape shows a “needle” (long lower shadow), with the price returning to its original position or close to it.
Purpose: To quickly shake off stop-loss orders, creating a moment of panic.
Operational details:
Usually, the needle will be accompanied by on-chain order cancellations, liquidity harassment, and other operations.
The operator will support at the bottom, and after washing the chips, continue the original trend.
4. News-based washing
Method: Using negative news and panic public opinion to create psychological impact.
Characteristics: Panic emotions among retail investors leading to active selling.
Purpose: To accelerate the washing out of holders, reducing selling pressure during the subsequent price increase.