Is there a feeling? As soon as you sell, the price skyrockets; as soon as you chase in, it plummets and traps you? Clearly, looking at the candlestick chart shows a breakout signal, but entering the market gets you killed; after a few days of holding on, you can't stand it anymore and cut your losses, only to turn around and see the main force pulling up and leaving you behind — this isn't bad luck; it's that you've stepped into the main force's most commonly used wash trading trap, forcefully handing over the bloody chips to the main force!
In the cryptocurrency circle, 80% of retail investors lose money, not because the market is bad, but because they were harvested by the main force's wash trading tricks 🌊 The main force doesn't lack funds or chips; what they lack is that little bit of 'unsteady chips' in your hands. They use a fixed script, exploiting human greed and fear, making you lose your footing in the repeated tug-of-war, and in the end, obediently hand over your chips and become the leeks that are cut.
Today, no beating around the bush; I will directly expose the core tricks of the major player’s washout, teaching you one trick to accurately identify it. Whether you are a novice or an experienced investor, learning it can help you avoid traps, follow the major player, and never be a victim of harvesting again! (Recommended to save, practice repeatedly with candlesticks to avoid pitfalls next time)
First, understand a core principle: the essence of a major player’s washout is not to crash the coin price, but to 'cleanse the floating chips'—that is, to wash out those retail investors who chase highs and panic sell, consolidating the chips into their own hands. This way, when the price rises later, the resistance is smaller and the cost is lower. Simply put, a washout is the 'accumulation action' of the main force, while retail investors often see a washout as a 'market reversal', which is the key to being cut!
Here comes the key! This one trick can accurately distinguish between 'washout' and 'selling', avoiding 90% of the pitfalls—look at the volume-price correlation, grasp the core signal of 'decreasing volume washout, increasing volume rise', and beginners should remember this sentence to avoid countless detours!
A specific breakdown that is easy to understand, combined with practical scenarios from the crypto world, no complex indicators, even beginners can get started:
1. Washout phase: the coin price fluctuates slightly (or declines slightly), but trading volume continues to shrink.
During a major player’s washout, they will not actually sell a large amount of chips; they will only use a small number of chips to smash down, creating a panic atmosphere. So you will find that while the coin price seems to be dropping, the trading volume remains very low, even decreasing further—this indicates that the ones selling are the panic chips of retail investors, the major player hasn't moved at all, they are just 'acting', waiting for retail investors to cut their losses.
Take a common example from the crypto world: a certain token rises from 10U to 15U, then starts to pull back, experiencing slight declines for three consecutive days, with daily drops not exceeding 5%, but trading volume decreases day by day, from 100 million in daily trading volume to 20 million—this is a typical washout, the major player is forcing those fearful of losses to exit while quietly accumulating chips.
2. End signal: after volume decreases to the extreme, suddenly increase in volume and break through previous high points of fluctuation.
When the major player has washed out sufficiently, and retail investors’ chips are mostly cleared, they will start to rise. At this time, the signal is very clear: trading volume suddenly expands (at least 1.5 times that of the previous day), the coin price quickly breaks through the previous high point of fluctuation, and during the pullback, it no longer breaks key support levels (such as the 5-day moving average, 10-day moving average).
Here, it's important to note a key distinction: the decreasing volume during a washout is a 'false drop'; while the drop during selling is a 'true drop'—during selling, the coin price drops accompanied by increased trading volume, the major player is selling off chips in large amounts. Once it breaks through key support, it will continue to drop and never return (refer to many air coins that were harvested by KOLs before, which followed this pattern).
Here’s another practical judgment technique, directly applicable:
If the coin price pulls back, with decreasing volume and not breaking key moving averages → it is highly likely to be a washout, hold firmly, and you may even add to your position with a small amount;
If the coin price pulls back, with increasing volume and breaking key moving averages → it is highly likely to be selling, decisively exit, don’t hold any illusions.
Many retail investors are cut because they cannot distinguish this point, mistaking the decreasing volume during washouts for market reversals, panicking and cutting losses; while mistaking the increasing volume during selling for pullbacks, blindly trying to catch the bottom, ultimately getting trapped deeper. Remember: the purpose of a major player’s washout is 'to absorb chips', while the purpose of selling is 'to cash out'; the volume-price signals of the two are worlds apart.
I also want to remind everyone: the tricks of major players washing out in the crypto world may vary, but the essence remains the same—whether it’s wide fluctuations, gradual declines, or false breakthroughs followed by pullbacks, the core is 'using emotions to deceive chips'—the more anxious you are, the happier the major player is; the more resolute you are, the more helpless the major player becomes.
To summarize: in the crypto world, surviving is more important than making money; avoiding traps is key. A major player’s washout is not scary; what’s scary is not understanding the tricks and being led by human fear and greed. Remember this one trick: 'decreasing volume washout, increasing volume rise', practice repeatedly with candlesticks, next time you encounter a major player’s washout, you’ll be able to respond calmly, not only avoiding being cut, but also following the major player to reap the benefits of subsequent rises!
Let’s talk in the comments: have you recently been washed out by the main force? Have you encountered situations where 'once sold, it rises'? Save this article, next time you encounter a turbulent market, take it out for reference, and never be the harvested leeks again!