The secret that the main players least want retail investors to know is their two major characteristics before they exit the market.
First, remember that the main players always exit at high points after consecutive large gains.
The first characteristic: A significant increase in volume at high points or a large gap up followed by massive fluctuations, meaning the price doesn't rise much anymore, also known as volume-driven self-increase.
The main players primarily increase in volume or make a large gap up, which can definitely attract a large number of retail investors to enter the market. The main players can take this opportunity to sell at a good price. However, they hold too many shares. They cannot sell out like retail investors do in one go.
So what to do? Next, there will be high point fluctuations, jumping up and down, creating the illusion that the main players are absorbing shares, attracting retail investors to continuously enter and take over. For example, on the same day, the price first surges and then pulls back, with the main players selling a batch first, then after a significant drop in the morning of the next day, it violently rebounds in the afternoon, creating the illusion for retail investors that the price won’t fall further. After a few rounds of this back-and-forth, retail investors will lower their guard and increase their positions. It’s like calling 'wolf' a few times; if there isn’t a substantial drop afterward, there are no losses. During this process, the main players can smoothly offload their shares.
The second characteristic: Although it has the highest accuracy, it is also the most complex and difficult to understand. I summarize it in six words: the stronger it is at the top.
You might wonder, how can it be stronger if the main players are offloading? The shares in the hands of the main players are vast. They cannot sell everything in one go like retail investors.
In fact, being a main player is also very tough. Especially during offloading, it is even more challenging. They need to support the price to give retail investors confidence while secretly selling. If they are not careful and the act goes wrong, letting retail investors run away first, the main players might also be unable to offload their shares at high points. Therefore, they have to repeatedly push the price down and then pull it back up, even continuously creating new highs to stimulate the highest desires of retail investors. Thus, the closer they are to the top offloading area, the harder the main players have to work to perform.
This reflects in the trend as the price feels very strong, and in technical indicators, it will show divergence after fluctuations or a new high after continuous adjustments. This is the logical principle of divergence and contradiction.
Join me in this bull market; every day is a feast!