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How does the trend develop?
The rise 📈 is driven by bullish buying,
A wave of decline is caused by bears selling off,
I used to think the same way, do you think so too? Do you also have multiple experiences of being stopped out after a run, only for the market to turn around immediately?
Experiences of being repeatedly abused tell me that the rise is caused by short-term stop-loss triggers, with the current price (regardless of the price) immediately buying up to push it higher;
The decline is caused by longs having to cut losses and sell off, which I have realized after multiple times becoming a liquidity sacrifice.
Additionally, market makers also push the market to wipe out most people's stop-losses,
Market makers provide liquidity, and they also have tasks to meet, such as completing a certain number of order transactions per day.
When the market is stable and trading volume is low, market makers will push the market to sweep stop-losses and trigger liquidations.
Understanding this principle gives us an extra perspective when analyzing the issue. $ZEC