How to Spot Main Force Shakeouts and Avoid Being "Forced Out"?

1. The Essence of Shakeouts
Main forces often clear out floating positions first to facilitate a better rally later:
Raise the holding costs, forcing early low-cost buyers to exit;
Use high selling and low buying to reduce overall costs.
👉 This usually occurs in coins with solid fundamentals and obvious capital involvement, often accompanied by intense shakeouts.

2. Common 3 Types of Shakeout Techniques

1️⃣ U-Shaped Shakeout
Purpose: Clear short-term profit-taking positions.
Features: In an upward channel, trading volume decreases, and chips are well locked; intraday shows “gap up → sell-off → rally again.”
Market: Large orders hit key levels, small orders trade sporadically, large orders hang without executing.

2️⃣ Arch-Shaped Shakeout
Purpose: Create a false impression of “rallying to sell,” and shake out trapped positions.
Features: Often appears at the previous neckline, with volume increasing on short-term positions; intraday shows “gap down → rally → fall back and close lower.”
Market: Small orders push prices higher, large orders sell off, mostly small trades.

3️⃣ Composite Shakeout (U-Shaped + Arch-Shaped)
Timing: When the coin price has already risen significantly and is preparing to break through a key resistance level.
Purpose: Simultaneously clear profit-taking and trapped positions.
Market: Buy and sell orders of 3-10 levels hang large orders, repeatedly press down or push up, large orders hang without executing, occasional trades happen in the air.

📌 Summary: When you see these market features, stay calm and analyze carefully. Don’t be easily scared out; shakeouts often mark the true starting point of a rally afterward.