Pin Bar Washing
Method: Create a sharp drop in a very short time, forming a long lower shadow, and then quickly pull the price back.
Characteristics: The candlestick chart shows a 'pin bar' pattern, where after the long lower shadow appears, the price recovers to its original position or close to it.
Purpose: Through a sudden large fluctuation, force stop-loss orders to be triggered, thereby creating market panic.
Operational details:
Pin bar washing is usually accompanied by the cancellation of on-chain orders and liquidity interference, further exacerbating price fluctuations.
The operator usually takes on chips below, restoring the price after the wash and continuing the original trend.