February 7, 2024, morning #ACE
Key words:
Bottom-fishing, main force, banker, decline, big positive line, trading volume, big negative line, rebound, control
The article is not an operational suggestion, but only a personal analysis record.
Transcript:
Let's take a look at the 4-hour candlestick chart of $ACE. The background is a falling bear market. After listing on Binance, it has been falling all the way. There was a panic sell-off at position 1, and the closing was a lower negative line, indicating that there was buying here. Then its trading volume gradually decreased, indicating that its selling did not follow and stopped, so there was a natural rebound.
Then, an upward negative line with an expanded volume appeared at position 2, which encountered a large number of selling orders and resistance, because this position has accumulated a lot of selling orders, all of which are retail investors who bought the bottom here before. The funds for buying the bottom returned to their cost position after panic selling, so most of them sold long orders. The following K-lines slightly supported it, and the buying and selling orders were in confrontation, because here it may be a short-term long opportunity at a smaller level. It stayed here for a short time and fluctuated for a while, but in the end, the selling orders prevailed.
After it fell below the previous low support level, there was another very large and long negative line at position 3, with panic selling, which was smashed down and then immediately pulled up, indicating that there were a large number of bottom-fishing buyers here, and such a large amount was obviously bought by the dealer. The next big negative line, but the volume was much less than the previous one, indicating that no one except the dealer dared to buy, and then the selling here did not follow, because the volume here was very low. These K lines were all in a narrow range of fluctuations, brewing a natural rebound, but it was very weak and fell down quickly. It was a state of no volume here, falling down here, without the participation of dealers, and then it was about to touch the previous low point, and was immediately pulled back,
Following closely, a large positive line with explosive volume was pulled up at position 4. The dealer was testing to see how many sell orders there were. Then it was adjusted here. There was no follow-up buying. Moreover, there were sell orders from the previous trend bottom-picking at position 2. The resistance was still quite large. After a false breakthrough, it fell again. Then it continued to fall, but its volume was not as high as that at position 4.
The 5th position was tested twice. There was a very small volume here, so there was no buying or selling. The amplitude of this K-line was very small. It was usually the kind of order placed by the dealer rather than the order taken. As long as someone sold, he would buy at par, which would not cause a big price fluctuation. Then the downward force was tested here and there was basically no downward force. Then it started to rise and pull the positive line. In fact, you can see that there is not much volume here compared with the previous one, but it pulled this relatively long positive line, indicating that there is no selling, and then it has been going up here. There are some negative lines here, which may be some short-term funds for bottom-fishing here. Retail investors generally sell here, and the dealer supports the bottom. There are many people who bottom-fished here before, and many retail investors who are not very confident in holding positions cut their losses here, so you can see that it is up and down here.
At position 6, there is a big positive line with a large volume. However, it turned into an upward negative line, which means that there are still a lot of selling orders at this position, and it may be followed by a whole plate. Sure enough, there is a positive line going up here, a false breakthrough, there is not much volume here, and then it starts to fall again. You see, this is a slow decline, there is not much volume here, it just falls in small steps, this is a typical method of the main force to shake the market and clean up retail investors.
There is a long downward Yin line at position 7. The dealer is testing the support level again. The volume is getting lower and lower, which means there are not many sellers. Of course, there is no buying either. The buying power is very weak. Sure enough, there is another wave of killing. This big Yin line fell rapidly, which probably scared the retail investors.
At position 8, an upward negative line appears. Then you can see that the amplitude of line 8 is actually smaller than the previous big negative line, and the volume is also very small, which means that there is basically no selling order. Basically, it can be concluded that this is a market maker's market shaking. Then you can see that this very, very small volume has drawn a positive line, which means that there is no selling order at all. Here, that is, around 7.5-8, is the cost price of the market maker.
Then you can see the large-volume rise here, the volume and price increase, and then the position 9 here fluctuated a bit. It is estimated that many people who were shaken out before bought the bottom. Here it was temporarily untied, and it was a decline with a shrinking volume. This decline with a shrinking volume shows that the main force did not leave, but the locked-in shares left. Then there was a rise here, and it has been sideways and oscillating at this position. The main force did not operate, and all the retail investors were doing it here. The dealer was slow to act, which confused the retail investors. They didn't know whether it was going up or down, and they didn't dare to do it. Those who know a little about trading may think that there will be an increase here after a long bottom consolidation, and then here he suddenly smashed another one, which was completely a negative line. This time it is estimated that retail investors who know a little about trading or know nothing are scared away. This is exactly the dealer's method.
At position 10, you can see that this lower shadow line has volume, but its amplitude is very small, which means that the main force has placed orders here to increase positions and has taken a lot of chips. The back is completely like a caterpillar, with no trading volume at all, which means that the main force has now controlled the chips very well.
I guess what's left is to pull the market up and quickly get out of the range of shocks, so that you won't be given a chance to get on board.
