Essential for Crypto! Full Analysis of Major Players' Wash Trading Tactics
Brothers, major players' wash trading is when the market makers throw low-priced chips to retail investors, raising the average market holding cost, facilitating future price increases to harvest profits.
Objectives of Wash Trading
Clearing Obstacles for Price Increase: Shake off retail investors who are positioned at low levels to avoid being hammered during a price surge.
Raising Average Holding Cost: Increase the average holding price for retail investors, which helps find buyers during high selling.
Lowering Holding Cost: Market makers sell high and buy low in waves, earning the price difference while washing out positions.
Common Manipulative Tactics
High-Open Nuclear Button: Explode the price at opening and then crash it, placing massive sell orders to scare out panic sellers and then buying back.
Fake Drop and Smash: Directly smash the price, and when retail investors follow the trend to sell, withdraw orders to scoop up shares, causing an instant rise.
Weaving Machine Control: Lock the coin price within a very small range all day, draining impatient retail investors.
Violent Roller Coaster: Repeatedly harvest profits through drastic price fluctuations, using spike patterns to liquidate contract traders.
Market Signals
Chaotic K-Line: Mixed bullish and bearish candlesticks, making the trend completely incomprehensible.
Shrinking Volume: Decreasing transaction volume indicates that retail investors are mostly out.
Key Level Defense: The market maker's cost line is the bottom line; if it breaks, run quickly, if it stabilizes, it’s an opportunity.
Sideways Accumulation: Common triangle and flag consolidation patterns, once the accumulation is complete, it becomes a turning point.
Remember! When encountering this kind of market, don’t panic; either lay flat and play dead or wait for stabilization signals before entering.