The three simplest steps to wash the currency circle

Cryptocurrency market washing consists of three steps: Pump-and-dump: The dealer raises the currency price to attract retail investors to buy, and then ships to make a profit. Shock and washout: currency prices fluctuate, retail investors' confidence is shaken, and chips are sold to dealers at low prices. Sharp decline: The market maker initiated a downward trend, forcing retail investors to cut their losses and exit.

Three major steps of coin market reshuffle

Coin market reshuffle refers to the market behavior of forcing weak position holders out through market shocks or sharp drops to collect chips for bookmakers or main players. Its purpose is to clear floating chips in the market and create conditions for a later market rise.

Cryptocurrency market washing usually includes three steps:

1. Pump and dump

The banker or the main force first raises the currency price to attract retail investors to follow suit and create the illusion of market prosperity. When the stock price reaches a certain height, the market makers begin to gradually ship goods and take profits.

2. Shock wash

After shipment, the dealer will continue to maintain the currency price fluctuating within a certain range, and through continuous rise and fall, it will consume the patience and confidence of retail investors. At this stage, retail investors may be induced to close their positions and stop losses, and sell their chips to the dealer at a low price.

3. Sharp decline

If retail investors fail to get out in time during the shock and washout phase, the market makers may launch a wave of sharp declines, further forcing retail investors to cut their losses. At this time, retail investors often suffer heavy losses and are easily out of the game completely.

The sign of the end of the wash is usually that after the currency price falls below the support level, it shows a continuous upward trend and breaks through the previous high. During the washout process, holders need to remain calm and avoid making wrong judgments due to panic. At the same time, you should also pay attention to the trends of market makers and adjust your trading strategies in a timely manner.

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