[Dry goods] ⭐️ What is the main force washing the plate ⭐️
![[Dry goods] ⭐️ What is the main force washing the plate ⭐️](https://sgsnsimg.moomoo.com/sns_client_feed/105475083/20240908/946e941148f2d7249f6759a84b429b15.jpg/big?area=104&is_public=true)
Block orders wash the plate (also known as washing the plate) refers to the behavior of block funds or institutional investors in the stock market deliberately suppressing stock prices or creating panic, forcing some investors (especially retail investors) in the market to sell stocks. The purpose of washing the plate is to clear the floating chips and increase the concentration of position chips in order to prepare for subsequent upward movement.
1. Why do block orders wash the plate?
• Increase the stability of holdings: Block orders hope to use washing to eliminate short-term speculators in the market, thereby improving the stability of holdings and preventing a large amount of selling pressure during subsequent rallies.
• Reduce costs: Through washing, block orders can absorb more chips at low levels, reducing the overall holding costs.
• To prevent following market trends: washing the market can suppress the following market trends (retail investors who chase after rising prices), avoiding a large number of retail investors following the rising stock prices and affecting the block orders' trading plans.
• Creating illusions: By creating fluctuations and oscillations in stock prices, block orders can deceive other investors and make them think that the stock trend is uncertain, causing them to choose to exit.
How do block orders wash the market?
• Stock price suppression: Block orders deliberately depress the stock price by selling stocks, creating a false impression of a stock price decline, thereby triggering market panic and causing wavering shareholders to sell their stocks.
• Range consolidation: Block orders may control the stock price to fluctuate repeatedly within a range, using frequent fluctuations to make holders feel bored or uneasy, and voluntarily exit.
• False breakout or false breakdown: Block orders may create false breakouts or false breakdowns, leading the market to mistakenly believe that the stock price is about to rise significantly or fall sharply, inducing investors to buy or sell at key points, and then operate reversely.
• Block orders create selling pressure through large sell orders, and then gradually buy in small lots to control the stock price and gradually absorb funds.
When should I wash the pan?
• After establishing positions: Profit-taking usually occurs after the block orders complete the initial set-up. At this time, block orders have accumulated a certain amount of chips, but still need to clear the floating chips through profit-taking to prepare for subsequent upward movements.
• After a large increase: When the stock price has already had a certain increase, and there are more followers and short-term funds in the market, block orders may choose to wash out to clean up profit-taking positions and avoid a large amount of selling pressure during the price rise.
• Before a breakout: Before reaching a key resistance level, block orders often choose to wash out to create a false breakout or a volatile trend, to induce retail investors to leave the market and reduce resistance.
4. Who are they washing out? Why do they need to wash out?
• The target of washing out is retail investors and short-term speculators: the goal of block orders washing out is those unstable mentality, easily affected by market fluctuations of retail investors and short-term speculators. These investors usually tend to panic in the stock price fluctuations, thus choosing to exit.
• The goal is to clean up the floating capital: through block orders washing out, institutions hope to transfer the stock chips from the unstable holders to themselves, reducing the selling pressure during subsequent rallies. At the same time, institutions can also absorb more chips at the low level and pave the way for subsequent operations.
5. How can we detect block orders washing out?
• The stock price is shaking but the decline is limited: The washing-up usually manifests as short-term fluctuations in the stock price, although there is a decline, but the decline is limited, and the stock price will not easily fall below the important resistance level.
• The trading volume has shrunk: During the washing-up process, the trading volume usually shows a shrinkage state, indicating that there is not much selling pressure in the market, and the block orders are not eager to sell, but are adjusting and absorbing through fluctuations.
• Monitoring capital trends: During the process of washing out, signs of large capital outflows are not obvious. Instead, there may be some capital quietly flowing in, indicating that the block orders have not really withdrawn, but are shaking the position and absorbing funds.
• Technical indicator divergence: During the process of washing out, common technical indicators (such as MACD, RSI) may show divergence, for example, stock prices fall, but the indicators do not synchronize downward, which may be the result of block orders deliberately suppressing stock prices.
Summary
Block orders washing is a common technique in market operations, aiming to clear out floating chips, reduce holding costs, and prepare for subsequent rises. Investors need to be cautious of the illusion during the washing period, not be deterred by short-term fluctuations, but rather determine whether the block orders are washing by observing the trend of stock prices, changes in trading volume, and capital trends.
1. Why do block orders wash the plate?
• Increase the stability of holdings: Block orders hope to use washing to eliminate short-term speculators in the market, thereby improving the stability of holdings and preventing a large amount of selling pressure during subsequent rallies.
• Reduce costs: Through washing, block orders can absorb more chips at low levels, reducing the overall holding costs.
• To prevent following market trends: washing the market can suppress the following market trends (retail investors who chase after rising prices), avoiding a large number of retail investors following the rising stock prices and affecting the block orders' trading plans.
• Creating illusions: By creating fluctuations and oscillations in stock prices, block orders can deceive other investors and make them think that the stock trend is uncertain, causing them to choose to exit.
How do block orders wash the market?
• Stock price suppression: Block orders deliberately depress the stock price by selling stocks, creating a false impression of a stock price decline, thereby triggering market panic and causing wavering shareholders to sell their stocks.
• Range consolidation: Block orders may control the stock price to fluctuate repeatedly within a range, using frequent fluctuations to make holders feel bored or uneasy, and voluntarily exit.
• False breakout or false breakdown: Block orders may create false breakouts or false breakdowns, leading the market to mistakenly believe that the stock price is about to rise significantly or fall sharply, inducing investors to buy or sell at key points, and then operate reversely.
• Block orders create selling pressure through large sell orders, and then gradually buy in small lots to control the stock price and gradually absorb funds.
When should I wash the pan?
• After establishing positions: Profit-taking usually occurs after the block orders complete the initial set-up. At this time, block orders have accumulated a certain amount of chips, but still need to clear the floating chips through profit-taking to prepare for subsequent upward movements.
• After a large increase: When the stock price has already had a certain increase, and there are more followers and short-term funds in the market, block orders may choose to wash out to clean up profit-taking positions and avoid a large amount of selling pressure during the price rise.
• Before a breakout: Before reaching a key resistance level, block orders often choose to wash out to create a false breakout or a volatile trend, to induce retail investors to leave the market and reduce resistance.
4. Who are they washing out? Why do they need to wash out?
• The target of washing out is retail investors and short-term speculators: the goal of block orders washing out is those unstable mentality, easily affected by market fluctuations of retail investors and short-term speculators. These investors usually tend to panic in the stock price fluctuations, thus choosing to exit.
• The goal is to clean up the floating capital: through block orders washing out, institutions hope to transfer the stock chips from the unstable holders to themselves, reducing the selling pressure during subsequent rallies. At the same time, institutions can also absorb more chips at the low level and pave the way for subsequent operations.
5. How can we detect block orders washing out?
• The stock price is shaking but the decline is limited: The washing-up usually manifests as short-term fluctuations in the stock price, although there is a decline, but the decline is limited, and the stock price will not easily fall below the important resistance level.
• The trading volume has shrunk: During the washing-up process, the trading volume usually shows a shrinkage state, indicating that there is not much selling pressure in the market, and the block orders are not eager to sell, but are adjusting and absorbing through fluctuations.
• Monitoring capital trends: During the process of washing out, signs of large capital outflows are not obvious. Instead, there may be some capital quietly flowing in, indicating that the block orders have not really withdrawn, but are shaking the position and absorbing funds.
• Technical indicator divergence: During the process of washing out, common technical indicators (such as MACD, RSI) may show divergence, for example, stock prices fall, but the indicators do not synchronize downward, which may be the result of block orders deliberately suppressing stock prices.
Summary
Block orders washing is a common technique in market operations, aiming to clear out floating chips, reduce holding costs, and prepare for subsequent rises. Investors need to be cautious of the illusion during the washing period, not be deterred by short-term fluctuations, but rather determine whether the block orders are washing by observing the trend of stock prices, changes in trading volume, and capital trends.
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