The main force is most afraid of retail investors understanding the two 'signals' left when he retreats at a high position.
If you can recognize these two, you can basically avoid 90% of the risk of being stuck.
The first signal is the strange fluctuations after a high volume at a high position.
A big rise, a high opening, looking like a strong momentum, is actually 'turning on the lights'. The main force knows that as long as he pushes the market up, retail investors will naturally rush in.
But the main force's position is too large, and he can't sell it all at once; he can only sell while performing.
So you will see:
In the morning, it rises and falls; in the afternoon, it is pulled up again;
Today, it dives to scare you, tomorrow it is strongly pulled up to stabilize you;
The illusion of not being able to fall repeatedly appears.
This is a classic 'false absorption'. Retail investors are tossed back and forth by these waves, thinking that there is big money supporting the market, and thus gradually increasing their positions. And every fluctuation is a window for the main force to quietly release chips.
The second signal looks the strongest but is the most dangerous.
I summarize it in six words: the higher it is, the stronger it is.
The misconception that retail investors often make is thinking that 'if it can create a new high, it is not the top'. But the more the main force wants to sell the goods, the more he has to make the price look good. He wants to make retail investors mistakenly believe that the trend is still there, the sentiment is still strong, and the buying will continue.
So in the top area, it often appears:
After a fluctuation, it rushes up once more;
After continuous adjustments, it suddenly breaks through with high volume;
Indicators show obvious divergence but still push higher.
These are not strong trends; they are strong supports.
Not a continuation of the trend, but the final performance.
The difficulty for the main force to sell is to both hold the price and throw out the chips. Once the performance is not convincing enough, retail investors run away first, and he can't sell.
As long as you understand this logic, you can see why the higher it is, the prettier the trend is.
The most dangerous time in the market is when it looks the strongest.
Just remember one sentence: real strength makes you hold comfortably; fake strength only stimulates you to keep increasing your position.
There are opportunities in the cryptocurrency circle, but more are traps. Very few can really make money. Follow Uncle Nan, and let you turn over and recover in this market!
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