What does inducing emptiness mean? Popular explanation of inducing emptiness

Short inducement refers to creating a false supply and demand relationship to induce traders to short-sell when the price rises, and then make profits when the price falls. Short baiters operate by establishing support or resistance levels, attracting short sellers, breaking support or resistance levels, and taking profits. Examples of short-selling are establishing support levels, releasing bad news, breaking support levels, stock prices rising, and short sellers losing money. To identify short sellers, pay attention to sudden large orders, counter-trend price movements, extreme volume and sentiment.

What is empty trap?

Short inducement refers to creating a false supply and demand relationship in the market, inducing traders to short when the price rises, and then make profits when the price falls.

How does air trap work?

Short baiters typically go through the following steps:

1. Establishing support or resistance levels: Through a large number of buy or sell orders, short baiters will establish support or resistance levels near a specific price, indicating that This level will be difficult to break.
2. Attract short sellers: Short lurers will induce traders to believe that the price will fall by publishing bad news or creating panic, thereby attracting them to short.
3. Break Support or Resistance: When a sufficient number of traders are short, short baiters will suddenly buy or sell, breaking the established support or resistance level.
4. Profit: Once the support or resistance level is broken, the market sentiment will suddenly reverse, and the price will rise or fall rapidly in the direction of the short-baiting, and the short-baiting will make profits in the process.

Example of short baiting

Here is an example of a short baiting operation:

• The short baiter established support near the price of $100, indicating through a large number of buy orders that this level will be difficult to break below.
• Short baiters release bad news, claiming that the economy is slowing down, which may cause stock prices to fall.
• Many traders believe the bad news and start shorting stocks.
• Short baiters suddenly bought large amounts of shares at $105, breaking the established support level.
• The stock price begins to rise, short sellers suffer heavy losses, and short sellers make huge profits.

Identifying short inducing operations

Identifying short inducing operations can be challenging, but here are some signs to watch out for:

• Sudden bursts of large buy or sell orders
• Prices that go against the market trend Movement
• Volume above normal levels
• Extreme sentiment on social media or the news

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