I explain to the mechanic why the market maker needs a price spill and how after that the buyout and market reversal begins.

➡️At the request of Alexander, who asked me to examine this topic in more detail.

Let's start with something simple - the market does not grow indefinitely. In order for a large player to gain a position at a favorable price, he needs to shake off weak hands. And this is precisely why the spill occurs - it is not just a fall, but part of a cycle of accumulation.

The theory of Richard Wyckoff, a man who has been observing market behavior for decades, fits perfectly here.
He showed that before every major growth there is a phase of distribution and accumulation.

📉 When the price falls, most participants sell the asset in panic, and large players quietly buy it back. It is at this moment that the bottom is formed.

According to Wyckoff, we may now be in Phase C - Test:
— The price makes a false breakout downwards (the so-called Spring).
— This Spring is needed to remove liquidity from those who placed stops under the levels.
— After collecting liquidity, the buyback begins and the price returns back to the range.

❗️ Why this is important to understand: Because the majority lose money precisely at the moment of manipulation, when the market maker “draws fear”. And those who know the mechanics of the cycle, on the contrary, are preparing for growth.‌‌