In the past couple of days, ZEC has been moving in a very 'steady' manner. The price has been fluctuating between 440 and 460, neither going up nor down, like a straight line. The trading volume is also sluggish, making it seem like the market has suddenly fallen asleep.
But seasoned traders understand that this kind of sideways movement is often the most oppressive calm before the storm.
Looking at the market, the price is stuck around 446, and the so-called support below, such as MA7 and MA25, has already been left behind. It's like a person standing on thin ice, looking down at something, but in fact, it's already in mid-air. The worst part is that there are hardly any decent buy orders below, just scattered small orders from retail investors supporting it. What does this indicate? It indicates that the real 'retail investors' are either already trapped and not moving, or still watching, not daring to reach out and take action.
If no one buys, the price won't go up. So why do market makers exert effort to maintain this sideways movement instead of just crashing down? That is their cunning.
Sideways is a psychological tactic. The purpose has two:
First, exhaust the patience of the bulls. Watching it not rise every day, those who were optimistic before will slowly doubt themselves and may ultimately choose to exit with a small loss, contributing chips to the market makers.
Second, create a false sense of security. Make some people feel: 'It can't go down from here; this is the bottom,' and then they can't help but rush in to 'bottom-fish'. Once this group of people comes in, the market makers just happen to offload their goods to them.
When you look at those so-called 'positive news', like giant whales accumulating or institutions discussing ETFs, they all seem a bit pale in front of sideways movement. The market makers can completely release positive news to attract attention while quietly setting up short positions in the market. When everyone relaxes their vigilance, thinking everything is fine, a big bearish line can directly break through all support, and those who just rushed in as 'bottom-fishing troops' instantly become trapped, buried halfway up the mountain.
So, having understood the market makers' method of 'sideways - harvesting', what should we do?
1. Do not participate in sideways movements. Remember, sideways movement that appears after a clear downtrend or at a high level of stagnation is likely a continuation of the downtrend. Better to miss out than to make a mistake. Don't get itchy hands to gamble on that 'breakthrough'.
2. Look at volume, but more importantly, look at price. Sideways movement without price increase is just playing tricks. Lack of volume below indicates there is no real buying support, making this platform extremely weak.
3. Set a clear stop-loss line. If you are already in the trade, set the stop-loss level a bit lower than the lower edge of this sideways range. Once it breaks down on volume, don't hesitate, don't fantasize, leave immediately. Protect your principal, so you have a chance for the next round.
4. Patiently wait for the real opportunity. After the market makers crash the market, panic selling often occurs, and that is when we can calmly observe and look for truly undervalued opportunities. Let the bullets fly for a while longer.$ZEC
