From the perspective of a market maker, what is Huma doing? (This article is almost pure dry goods with no private goods, safe to consume) @ humafinance Market makers are not disorderly, it's just that you're not sure Contract positions are the absolute opponent of market makers, and for altcoin contracts, you need to be an extremely professional Pro player to try placing positions. Still simple without looking at the version 1. Setting up short-term long positions may be a consideration for the size of holdings (each altcoin has a limit on its holdings) 2. High leverage is highly susceptible to damage, even if the results show that your direction judgment is correct 3. Preventing losses from market makers is the correct way to play altcoins 4. You need to know that your technical analysis is much lower than what "Zhuang" wants to do (except for fully gamified coins such as BTC, ETH, DOGE) 5. The current market is not an era of trying everything in one go. Try to incorporate this into your trading system to avoid making mistakes ———————————————————————— Knowledge point 1: Market makers (active MM) need to conduct multiple trial trades before officially rising, which is essentially due to insufficient buying. When buying is sufficient, this rule will undergo fundamental changes Market makers are officially rising 📈 We need to conduct a trial before, which means testing liquidity up and down. The kindergarten style explanation is to test buying and selling orders up and down, in order to determine our further actions, whether to continue to attract funds or to attract funds in place to quickly rise Since most of the selling orders for VC coins are handled by Zhuang (including institutional project side market makers) themselves, we will only discuss the buying part for now. The selling part is also shown in the picture, and I often use simple words to explain it. ———————————————————————— How did Huma do it here? Let's clarify the 8 box lines I drew The orange line is the resistance line The green line is the support line However, the orange and green lines belong to areas with abundant liquidity, which means that in the past, there were a large number of buying and selling orders changing hands at these positions, and at the same time, the direction reversed. The losing side is often in the opposite position, and the losing side becomes a resistance to the K-line movement (regardless of up or down) ———————————————————————— From line 1, it can be seen that this line is the last segment of the box interval that falls below 0.055. This means that before the official decline, there is a trapped market above line 1 (0.055), and it should not be released at will. If you are a contract player, this is a dead end for high leverage players. From line 2, it can be seen that this is the bottom range of the stationary (0.036-0.039) range. It is evident that after the bottom appeared at 0.036, it briefly rose to around 0.044 and then continued to retrace to 0.036 The consideration of market makers here is 1. Make market makers with the same volatility as BTC, but with increased volatility To put it simply, if BTC falls, I will also fall. The bottom of the decline is confirmed by the liquidity of the trial market and institutional costs Before the rally, I need to liquidate the long positions of my opponents (at least those with high leverage), so it's enough to see two retracements behind the second line This step back is what I call, step back confirmation. The purpose is 1 Test Plate 2 Clearing the long positions of the rebound box From the perspective of Line 3, it is the first position where a reverse force appears after falling below 0.055. Therefore, the high point at which a rebound is confirmed at the bottom in the middle of Line 3 is the starting point for this position. In the range of Line 4, breaking through and stepping back will still touch the resistance of Line 3, which is not entirely unreasonable. Bulls and market makers will take proactive actions in such important positions Line 4 is the market before Huma breaks through, and we will still retrace the high range after breaking through Line 3. We will not continue to insert, and after inserting, we may go against the trend. That long red needle is for clearing counterparty positions in the contract. Perhaps it can have a direct correspondence with Position, that is, to kill contract positions and act as a heaven and earth needle. Line 5 is the starting point before Line 1, which is around 0.058 At the high point after the recent rebound, I still stepped on this position, and continuing to rise here can be understood as potential selling pressure in the trapped market above line 5. So here, Duojun will take profit, and the judgment of the market maker is to try and see if there are enough buying orders to outweigh the potential selling pressure. Line 6 is another starting and falling point Line 7 is the last retracement of Huma before it officially rebounds from below 0.04 This is the last test before the rebound Line 8 is a clear resistance level for the future ———————————————————————— What's the use of knowing these lines? This is the core of my personal transaction What you need to do is to operate the K-line to a certain position and do something about it Instead of making judgments about price fluctuations right now From line 1 to line 4, we can see the difficulty of trading trend contracts during this period. Even if you go in the right direction, you cannot benefit from it As retail investors, advancing to Pro players also requires a clear understanding of the market. That's all for today's conversation If it's helpful, you can come and give rewards. 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