See Through the Insider: Unveiling the Operations of Major Players

Author: Lin Zhenqi, Wang Yu
Publisher:
Publish Date: 2006-10-01
Features: Conducting various analyses on individual stocks is an attempt to understand the motives of the "master" () within the current trading range through different methods! To keep pace with the master's moves, one must first gain a deep understanding of the master. Only by thoroughly grasping the master's operational tactics at every stage can one speak of timely and accurate "following the master." Although each master's operational methods differ greatly, it is inevitable that various signs are left behind during the process of capital operation. As long as one carefully observes and analyzes price fluctuations, the master's every move will be exposed before your eyes. How to conduct technical analysis on the master's operational signs to accurately understand their true intentions? The reader can find the answers in this book. Understanding the master means profits. This book provides a detailed description and analysis of the master's various operational tactics during accumulation, price hikes, consolidation, and distribution. As long as the master is operating within the market, technical analysis can accurately determine the master's objectives at different stages!
Range fluctuation accumulation is a frequently used accumulation method by masters. Its technical pattern is very easy to identify, but due to investors' lack of patience, this trend is often overlooked! As the name suggests, range fluctuation accumulation refers to the master quietly buying stocks within a smaller range. Due to the master's advantage in capital, they significantly influence price fluctuations. By artificially placing large volumes of sell orders above the current price level, they suppress price rises. When investors realize that the price has not risen recently, they gradually lose patience and sell their stocks at low prices to the master. The biggest advantage of range fluctuation accumulation for the master is that the accumulation cost can be effectively controlled. Since the master's accumulation range is within this fluctuation, the purchase price of the stocks is generally consistent. For investors, the biggest advantage of the master using this method for accumulation is that the master's holding cost can be easily determined. Knowing where the master's holding cost lies allows for accurate calculation of the master's profits, providing important references for deciding whether to distribute the stock. However, for investors, there are no significant profit opportunities within the master's accumulation range. Often, the price rises only slightly before being suppressed by the master. This is a suppression operation to effectively control the accumulation cost. But once the price falls short-term to a certain extent, the master will push it back up, fearing that many investors will buy at low prices. Therefore, within this range, the price fluctuation is very small. Only after the master completes the accumulation and the price breaks out of this range will the real upward trend begin.
Example: Range Fluctuation Accumulation of GSPC (600018) (Figure 1-6). In the later stage of the figure, GSPC experienced a strong upward trend. The upward price movement indicates that substantial capital had already entered to complete the accumulation before this point. When operating in the real market, in addition to analyzing the current upward trend in detail, it is also essential to clearly identify the master's accumulation cost zone! Knowing the master's accumulation zone allows us to understand the extent to which large funds are profiting at the current price level. If these massive funds have high profit margins, investors need to be cautious. Once a weak trend forms, it may be time to distribute the stock, as a weak trend at a high position indicates that the master's invested capital is continuously exiting.
Where did the master accumulate, and what methods did they use for accumulation? From the figure, we can see that before the price rise, the trading volume formed clear and continuous volume accumulation. These piles of volume are the most direct manifestation of capital entering to accumulate! If the master's capital had not intervened, how could the volume have remained so high? Since the price remained in a range-bound trend during the volume surge, we call this method: Range Fluctuation Accumulation Method. This is