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$RAVE has recently been frequently asked a question — what does "washing the disk" really mean? Why does the main force have to wash the disk?
If you can't always understand this logic of $ZEC, then repeatedly paying tuition in the trading market is basically a certainty.
Let's start with the core point: washing the disk is not at all about accumulating shares.
Truly capable main forces usually complete most of their position building before washing the disk. The real purpose of washing the disk is simply to clear out unstable chips and remove obstacles for the subsequent rise.
So what exactly are floating chips? Simply put, they are chips that are unstable, ready to be sold at the slightest disturbance. These chips usually come from three types of people:
The first type is short-term traders, who rush to exit after earning 5%-10%, and never wait for the real main upward wave to arrive.
The second type is retail investors who have been trapped before; once they are freed, they want to escape, preferring to earn less than be trapped again.
The third type is trend-following traders, who understand a bit of technical analysis, and at the slightest disturbance, they rush to cut losses.
These people share a characteristic: their rhythm is completely different from the main force. When the upward phase begins, these chips are especially prone to dumping at critical points, which can drag down the market rhythm or even cause a stampede. Therefore, the main force must first wash out these chips.
The main methods used for washing the disk are roughly three:
One is box-range oscillation — bouncing within a certain range, repeatedly testing short-term traders' patience until they can't stand it and exit.
Another is breaking the support — suddenly smashing a large bearish candle through the support level, wiping out all technical stop-loss orders, then quickly pulling back.
The third is fake breakout — initially pushing the price higher to attract trend-followers, then reversing and smashing down to completely drive out the indecisive chips.
After washing the disk, the chips are transferred once. Panicked investors exit, confident investors enter, and the overall holding cost rises. During subsequent rises, selling pressure naturally decreases.
Many traders always fail to understand one point: the real opponent is not the main force, but other retail investors. The main force is exploiting human weaknesses, using volatility to consume retail investors against each other.
To avoid being repeatedly harvested, the key is to understand this washing logic and not to easily stand on the wrong side.