Common Wash Patterns in #币安Alpha上新
Common wash methods used by market makers in the cryptocurrency market include:
🚩Intra-day Wash: A sudden drop in price during the trading day followed by a rapid recovery, commonly seen in strong cryptocurrencies, aimed at scaring off panic sellers.
🚩5-Day Line Wash: Price retraces to the 5-day moving average and continues to rise, suitable for short-term strong cryptocurrencies.
🚩20-Day Line Wash: Price pulls back to the 20-day moving average, completing an intermediate wash, suitable for medium to long-term cryptocurrencies.
🚩Triangle Wash: Price falls from a high point back to the starting point, forming a triangular shape, suitable for the early stage of strong cryptocurrencies.
4️⃣How Should Retail Investors Respond to Wash?
🟨Hold Firm on Bottom Positions
In the face of market maker wash, retail investors should avoid panic selling, especially when holding low-cost tokens. Methods to identify the bottom area include:
🚩Chip Concentration: The bottom chip concentration area is usually the cost area for market makers.
🚩Turnover Rate: A turnover rate exceeding 200% over a period may indicate the cost range for market makers.
🚩Volume Accumulation: The average price of accumulated trading volume often approaches the cost of market makers.
🚩Large Orders Suppression: The presence of large orders on the order book usually indicates the cost position of market makers, often leading to a price increase after suppression.
As long as the retail investor's holding cost is lower than that of the market maker, there is no need to worry about being washed out.
🟨Rationally Assess the Trend
Retail investors should avoid subjective speculation, blindly thinking that a decline is a wash or an increase is a trap. It is recommended to judge trends based on market signals (such as the direction of moving averages, changes in trading volume) and to take advantage of key points (such as the market maker's cost area) for high selling and low buying, waiting for a rally.
Common wash methods used by market makers in the cryptocurrency market include:
🚩Intra-day Wash: A sudden drop in price during the trading day followed by a rapid recovery, commonly seen in strong cryptocurrencies, aimed at scaring off panic sellers.
🚩5-Day Line Wash: Price retraces to the 5-day moving average and continues to rise, suitable for short-term strong cryptocurrencies.
🚩20-Day Line Wash: Price pulls back to the 20-day moving average, completing an intermediate wash, suitable for medium to long-term cryptocurrencies.
🚩Triangle Wash: Price falls from a high point back to the starting point, forming a triangular shape, suitable for the early stage of strong cryptocurrencies.
4️⃣How Should Retail Investors Respond to Wash?
🟨Hold Firm on Bottom Positions
In the face of market maker wash, retail investors should avoid panic selling, especially when holding low-cost tokens. Methods to identify the bottom area include:
🚩Chip Concentration: The bottom chip concentration area is usually the cost area for market makers.
🚩Turnover Rate: A turnover rate exceeding 200% over a period may indicate the cost range for market makers.
🚩Volume Accumulation: The average price of accumulated trading volume often approaches the cost of market makers.
🚩Large Orders Suppression: The presence of large orders on the order book usually indicates the cost position of market makers, often leading to a price increase after suppression.
As long as the retail investor's holding cost is lower than that of the market maker, there is no need to worry about being washed out.
🟨Rationally Assess the Trend
Retail investors should avoid subjective speculation, blindly thinking that a decline is a wash or an increase is a trap. It is recommended to judge trends based on market signals (such as the direction of moving averages, changes in trading volume) and to take advantage of key points (such as the market maker's cost area) for high selling and low buying, waiting for a rally.