The core of the dealer's wash is to clear floating chips, common techniques and key points of identification:
1. Smash-style wash
• Sudden drop of 5%-10%, breaking key support levels, significant large order sell-off
• Key: A quick rebound after a drop, with volume not continuously expanding indicates a wash, while the opposite indicates risk
2. Sideways oscillation wash
• Narrow fluctuations (3%-5%), false breaks, testing patience
• Response: Pay attention to breaks in the range, a significant upward volume may signal a start
3. Needle-like wash
• Instantaneous sharp drop leaving a long lower shadow, quickly pulling back
• Key: Stabilizing at the original support level indicates a wash, breaking the level requires caution
4. News-related wash
• Spreading short-term negative news, taking advantage of panic selling
• Response: Verify the truthfulness of the news, rumors leading to declines may present a low-buy opportunity
Distinction between wash and unloading
• Main force control: Stable position during wash, significant outflow of chips during unloading
• Liquidity: Stable pool of funds during wash, large withdrawals accompany unloading
• Trend: Wash does not disrupt long-term upward trends, unloading leads to trend reversal
Core logic: Wash "scares away" retail investors, unloading "traps" retail investors; declines with low volume and rapid corrections are often signs of wash, patiently holding chips can catch the main upward wave.