Attention! This is the simplest and most basic mnemonic, and many people try to memorize it in order to improve their understanding! These are experiences accumulated by top stock traders over a long period of time. If you also want to judge the traces of the main force's operations, it can greatly enhance your market sense. I have summarized the nine most important points. As always, please like, bookmark, or comment "666" to support, and remember to check in daily for more trading tips so you won't have trouble finding them later for review. The mnemonic is easy to remember, but understanding the underlying logic is the most important thing.

1. Sharp rise in early trading, pullback after surge

The first hour of the morning session is one of the most important time periods of the day. After the market opens, the stock price rises rapidly, with an increase of more than 3%, possibly hitting the daily limit, then starts to decline, and the full-day gain drops below 2%, or it might even turn negative. This is often the main force shaking out weak hands or inducing buying. If it's the main force shaking out, trading volume will shrink significantly during the decline, and it won't break important support levels, so changes in volume become especially important.

2. Sharp drop in early trading is a shakeout

This pattern is classic and common. After the market opens, the stock price drops rapidly, especially in the first half hour, but the trading volume does not increase during the drop—it's a low-volume decline. Then the stock price gradually rises again, with increasing volume, returning to its original price range. This is one of the main force's shakeout tactics. On the daily chart, the price doesn't break previous lows, the five-day moving average, or the lower edge of the platform—all key support points.

3. Sharp rise at the open is a bull trap

If the stock price surges quickly in early trading, even hitting the daily limit, but volume does not increase and market activity is low, then the price starts to drop, forming a large bearish candlestick. This actually indicates the main force is offloading shares. A low-volume surge that can't hold the daily limit is a sign of weakness.

4. Sudden surge at the close—watch the next day

If a stock is weak all day but suddenly surges in the last 30 minutes, especially the last 10 minutes, it often means the main force is not strong or decisive, catching people off guard. So pay attention to the next day's trading: Is there strong follow-up buying? Will the price fall back? If follow-up buying is weak, the main force may continue shaking out.

5. High volume at low prices means the main force is entering

After a long period of decline, if trading volume increases sharply at low prices, even doubling, and there are large bullish candlesticks or even limit-ups, this is often the main force building positions or breaking above a resistance level with volume. But if a spike in volume appears in the middle of a downtrend, be cautious—the trend hasn't truly reversed.

6. High volume at high prices means distribution

After a big rally, there are many profit-takers. If high volume appears at the top—huge or record volumes greater than during the acceleration phase—it means there’s significant market disagreement and lots of shares changing hands. This indicates the main force is distributing shares. The most common pattern is a high open and a low close, forming a large bearish candlestick.

7. Low volume at lows—wait and see

After a prolonged decline, if volume keeps shrinking, it means market activity is low. Low volume at the bottom means little market attention, so it’s not very significant to watch. Usually, after a long period of sideways movement, the market will eventually pick a direction.

8. Sudden drop at the close—watch for next-day recovery

If the stock drops sharply in the last 30 minutes, with a decline of more than 3%, and the next day opens lower but then quickly rebounds, recovering the previous day's loss, this is often the main force deliberately selling to shake out weak hands. If there’s no recovery the next day, it usually means the main force is weak.

9. Big afternoon rally, pullback at the close

Around 1:30 PM, if the stock surges with increased volume, but in the last 30 minutes pulls back with sharply shrinking volume, forming a candlestick with a long upper shadow, this is often the main force shaking out weak hands. Here’s a detail: during the pullback, the price does not fall below the point where the rally started—this is a key level. If the rally occurs on low volume, be extra cautious.

That's it! These are the nine mnemonics to help you judge whether the main force is shaking out or distributing, and to improve your understanding. The eight case study charts below are also worth remembering. I hope they are helpful or inspiring for you.