From the perspective of the market maker, analyze why the shrinking sideways trend is a precursor to an increase.
1. It usually occurs after a long-term price decline. Some retail investors think that the time is ripe and start buying lows in stages.
2. How can the small amount of funds of retail investors consume more than the banker? How much retail investors buy, how much or more the banker sells, and strive to create a trend of retail investors buying the bottom and falling more and more for a period of time.
3. At the end of the day, retail investors lose their temper and their patience. I don't dare to buy because I'm afraid it will continue to fall, and I don't dare to sell because it won't help to stop the loss now, so the trading volume will become less and less. It just shows a shrinking sideways trend for a period of time.
4. At this time, the banker has absorbed enough retail chips from the sharp decline to the negative decline, which became one of the capitals for his attack again. At the same time, the retail investors were wiped out, and the work of building a position was completed perfectly.
5. The next step is to prepare for the next wave of attacks. The shrinking increase will attract retail investors to follow, reach the top, and then fall again. What goes around comes around.
1. It usually occurs after a long-term price decline. Some retail investors think that the time is ripe and start buying lows in stages.
2. How can the small amount of funds of retail investors consume more than the banker? How much retail investors buy, how much or more the banker sells, and strive to create a trend of retail investors buying the bottom and falling more and more for a period of time.
3. At the end of the day, retail investors lose their temper and their patience. I don't dare to buy because I'm afraid it will continue to fall, and I don't dare to sell because it won't help to stop the loss now, so the trading volume will become less and less. It just shows a shrinking sideways trend for a period of time.
4. At this time, the banker has absorbed enough retail chips from the sharp decline to the negative decline, which became one of the capitals for his attack again. At the same time, the retail investors were wiped out, and the work of building a position was completed perfectly.
5. The next step is to prepare for the next wave of attacks. The shrinking increase will attract retail investors to follow, reach the top, and then fall again. What goes around comes around.