Market makers who have been continuously pumping the coin usually do this when changing direction, but the occurrence of this situation does not necessarily mean that the market maker has to change direction. A reduction in holdings merely indicates that some short orders have been pumped, and the market maker's short orders may not have been entered yet; there might still be a larger pump coming. However, when this situation arises, a small stop loss can be set to attempt to catch a reversal, as the risk-reward ratio is very high.



Market makers generally change direction in two steps: 1- Pump the market to liquidate the short retail investors while enticing the longs. The market maker closes their long positions, reducing the holdings while the price rises (dominant), OI increases, trading volume increases, and the trend is about to reverse. 2- The market maker stops pumping, and continues to open short at the high: holdings increase (dominant), the price drops, and OI surges. The divergence between holdings and OI is the first step, and the certainty increases after the second step, allowing right-side followers to enter alongside the market maker.

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The scissors difference may occur multiple times during the pump process. After the scissors difference appears, you can set a stop loss on the left side to catch the reversal, or wait until the market maker's direction change is more certain before entering on the right side.

Taking $Prompt as an example, after 21:45 on the evening of the 11th, the trading volume increased, and there was a divergence between the holdings and the value of the holdings. However, the number of contract holdings at the high point did not continue to rise, indicating that the market maker has not entered the market yet. The right-side operation is to continue to follow the market maker to go long.

After 24 o'clock, after the settlement of the funding rate, the dealer began to pull the plate, a few minutes of the pin pulled to 0.46U, almost to 21:45 price 0.24U doubled position, at this time there was a scissors difference again, should have burst 21:45 on the car on the retail short order, you can open the left short, while setting a stop loss of 0.426U (but the back triggered the stop loss, and continued to pull up two waves)

In hindsight, Prompt ultimately pumped to 0.62u before the major trend reversal began, and it took a few stop losses before catching a significant downturn.
PROMPT-0.2%
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