Trading stocks may seem simple to talk about, but really doing it well is not easy. Having only theoretical knowledge is far from enough; practical experience is needed to hone skills, and most importantly, you must develop a sensitivity to market signals.



I’ve found that the fundamental reason many retail investors lose money is that they haven't truly mastered the language of market order flow. Every move by the big players is actually communicating something; if you can read these signals, opportunities will naturally present themselves.

First, let’s talk about the most common market order flow techniques. Price jumping and sweeping orders to absorb shares are favored by powerful institutions. They directly buy all the orders below at prices far above the ask, making this method of absorbing shares very obvious and easy to identify. Another tactic is pushing the price up before a rally to trap sellers; the main players will pile up large sell orders at key resistance levels to create a false impression. After scaring out retail investors, they sweep away these sell orders, causing the stock price to hit the daily limit-up.

Hitting the daily limit-up to unload shares is also a skill. The main players will open up inducements to buy, cancel large orders, and re-queue—these are routine tricks. There’s also the tactic of using huge sell orders to push out shares; speculators particularly favor this move. The order book forms a straight line, with massive sell orders attracting attention, while quietly creating buy orders underneath to scoop up shares. Finally, they dump the stock downward, making it look like a surge of buying pressure, but in reality, it’s a trap for retail investors.

In the early stages of absorbing shares, to prevent the stock from rising too quickly, the main players will create the illusion of pressure at resistance levels. However, modern tactics have evolved. Instead of clearly pressing large orders from above, they stop sweeping orders upward and quietly accumulate shares within a narrow range. The order book looks like a shakeout, but it’s actually a modern strategy for absorbing shares. Another tactic is the “sharp corner” accumulation: after quickly clearing the sell orders above, the main players pause buying to let the price fall back, forming a sharp dip—this is the easiest pattern to identify during intraday trading.

Regarding practical operations, I’ve summarized a few experiences. Stocks that open low but steadily rise with high trading volume can be bought randomly; stocks that open high but fall with high volume must be sold immediately; stocks entering the decline list at the end of the day should be sold first to avoid negative news; stocks entering the top 20 gainers at the end of the day can be bought today and sold tomorrow; after a volume surge to break through resistance, if pulled back, it usually indicates a shallow decline, so sell at the top; if the intraday chart shows multiple sharp drops and rebounds, be cautious of main players distributing shares.

The market order flow language used by the big players also follows certain patterns. A W-shaped bottom formed by opening high and then falling but not breaking yesterday’s closing price indicates the main players are intentionally manipulating the market early on; opening low and then rising above yesterday’s close suggests accumulation and correction by the main players; strong sideways consolidation after an early rally, ignoring the overall market, shows strong control by the main players; climbing along moving averages with a strong sideways pattern indicates energy buildup; three-wave attempts to hit the daily limit with continuous moving average support are classic signs of strength; opening low and then rising to hover around yesterday’s close indicates the main players are clearing out followers, and after sufficient turnover, the stock can move to the next level.

Honestly, the knowledge of order flow is profound. Reading just one article is definitely not enough; you need to constantly experience and summarize through practical trading. Currently, BTC is hovering at 80.52K, down 0.25%, ETH is at 2.30K, up 0.66%. The market still offers opportunities—if you can read the language of order flow, you can seize your own chances. Keep paying attention to market trends, and frequently check the market on Gate; it will greatly help improve your market intuition.
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