See Through the Insider - Unveiling the Operations of the Main Force

Author: Li Zhenqi
Publisher:
Publish Date: 2006-10-01
Features: Range trading is a frequently used accumulation method by market manipulators. Its technical patterns are very easy to identify, but due to investors' lack of patience, this trend is often overlooked! Range trading, as the name suggests, refers to the act of market manipulators quietly buying stocks within a small range. Due to their advantage in capital, they significantly influence stock price fluctuations. By artificially placing large volumes of sell orders above the current price, they suppress the stock's rise. When investors realize the stock price isn't rising in the short term, they gradually lose patience and sell their holdings at low prices to the manipulators. The biggest advantage of range trading for market manipulators is that their accumulation cost can be effectively controlled. Since the accumulation range is within this fluctuation, the purchase price of the stock is generally consistent. For investors, the biggest advantage of this accumulation method is that it is easy to determine the manipulator's cost basis. Knowing where the manipulator's cost lies allows for accurate calculation of their profits, providing important references for deciding whether to sell. However, for investors, there are no significant profit opportunities within the manipulator's accumulation range. The stock price often doesn't rise much before being suppressed by the manipulator, which is a deliberate action to control accumulation costs. But once the stock price falls short-term to a certain extent, the manipulator will push it back up, fearing more investors will buy at low prices. Therefore, within this range, the price fluctuation is very small. Only after the manipulator completes accumulation and the stock price breaks through this range will the real upward trend begin. G Shangkou (600018) range trading method (Figures 1—6). G Shangkou showed a strong upward trend in the late stage of the figure. The stock formed an upward trend, indicating that substantial capital had already entered to complete accumulation before this point. When operating in practice, investors must not only analyze the current upward trend in detail but also clearly identify the manipulator's cost basis! Knowing the manipulator's accumulation range allows us to understand the extent to which large funds are profitable at the current price. If these massive investments have high profit margins, investors need to be cautious. Once a weak trend forms, it's time to sell, as a weak upward trend at high levels indicates that the manipulator is continuously withdrawing their funds. So, where did the manipulator accumulate, and what methods did they use? From the figure, we can see that before the rise, trading volume formed clear and continuous volume accumulation. These piles of volume directly reflect the entry of capital for accumulation! If the manipulator hadn't intervened, how could trading volume have remained so high? Since the stock price maintained a box-shaped fluctuation during the volume surge, we call this method: Range Trading Accumulation Method. This is