Do you often feel that every time you enter the market, it feels like you triggered the market's reverse switch? This is not merely bad luck, but you may have fallen into the so-called "liquidity trap" carefully set by so-called "smart money." The market does not fluctuate randomly; it is a well-planned hunting game, where most retail investors often become the hunted prey.



This complex market manipulation usually follows four steps:

1. Create temptation:
The market will first present a seemingly healthy and stable upward trend, allowing investors to let their guard down and forming a general perception of "bull market prevailing."

2. Reveal Crisis:
Suddenly, the upward momentum began to weaken, an important support level was breached (the market structure changed), and then the rebound was lackluster, falling below the previous low again (the structure was damaged). This is the first signal of a market turnaround, suggesting that bears will soon dominate the market.

3. Set Trap:
This is the most lethal stage. Just before the price is about to plunge significantly, the market will suddenly surge strongly, creating the illusion of a "breakout upward" and even reaching new highs. This is known as "liquidity sweep"—the aim is to attract retail investors chasing the rise and trigger the stop-loss orders of premature short sellers. This area often becomes a nightmare for retail investors but is an ideal accumulation zone for savvy investors.

4. Precision Strike:
Real professional traders will complete their final short positions in the trap area (usually the order blocks above previous highs or fair value gaps) after a "liquidity sweep" when prices begin to show weakness.

As a retail investor, the key is to recognize these market manipulation patterns and avoid becoming prey to "smart money." Stay vigilant, learn to identify changes in market structure, and avoid chasing high prices easily, in order to remain undefeated in this complex market game. Remember, the market is always changing, but the greed and fear inherent in human nature remain constant. Wise investors should learn to control their emotions and analyze market trends rationally, rather than blindly following so-called trends.
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RebaseVictimvip
· 3h ago
Chives' tears fill the basin
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BearMarketSurvivorvip
· 3h ago
Rules of Survival on the Battlefield: Risk First, Reward Second
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CoconutWaterBoyvip
· 07-30 05:52
Even if you understand it's all a trap, you still have to charge forward.
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BearMarketMonkvip
· 07-30 05:52
Suckers also understand this trap.
View OriginalReply0
ProbablyNothingvip
· 07-30 05:47
Lost my shorts again.
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