In the stock market, it is crucial to gain insights into the movements of market maker funds. This article will reveal how to accurately identify market maker wash trading behavior through four key steps, allowing you to grasp the best buying opportunities.

First, we need to pay attention to the overall trend of the market. A washout typically occurs in an upward trend, as market makers need to acquire more chips during the price increase. If the market is in a downward trend, then a continuous decline may indicate a true breakdown rather than a washout.

Secondly, we need to pay special attention to consecutive bearish candlesticks. Market makers often create at least three consecutive bearish candlesticks, or even more, to effectively shake out retail investors' holdings. This continuous downward trend can often trigger panic among investors, thereby achieving the purpose of a washout.

The third and most critical step is to closely monitor the changes in trading volume. When consecutive bearish candles appear, if the trading volume significantly shrinks, dropping below a quarter of the highest trading volume during the previous uptrend, it usually indicates that panic selling is nearing its end and that the market maker's cleansing efforts have reached the expected effect.

Finally, we need to patiently wait for the breakout signal to appear. When a strong bullish candle appears with increased volume, and its closing price breaks through the highest point of the previous consecutive bearish candles, it often indicates that the market maker has completed the washout and is ready to start a new round of upward movement. At this time, it is also the best entry opportunity for investors.

It is worth noting that during a series of consecutive bearish candlesticks, if the size of the bearish candlestick bodies becomes smaller while the trading volume significantly shrinks, it indicates that the downward momentum has been exhausted and the panic sentiment is gradually dissipating. In this situation, the probability of a successful washout is higher.

However, the stock market is ever-changing, and the relationship between volume and price may vary in different market environments and stages. Therefore, investors need to analyze flexibly in conjunction with the specific situation when applying these strategies to avoid mechanical application. Only in this way can they accurately grasp the market maker's trends and seize the best investment opportunities in a complex market.