Retail investors often ask a question: Why do they always buy at the high? In fact, there are clues before the main force distributes, and mastering these two features can help avoid many pitfalls.

Main force distribution always occurs at relatively high levels after a round of gains, which is common sense. But how exactly can we identify it?

**The first signal is volume expansion with stagnation**

The main force will first create the illusion of strong momentum by increasing volume to push prices up or opening significantly higher, attracting follow-up traders to enter. After retail investors swarm in, the main force begins to sell off their positions in batches. Due to holding large positions, they cannot sell everything at once, so the subsequent movement becomes a pattern of repeated oscillations at high levels—today’s surge is followed by a sharp drop, and tomorrow’s rapid decline is then pulled back up. This cycle repeats, causing retail investors to gradually relax their vigilance, or even think "This is the main force accumulating," and instead add more positions. Unbeknownst to them, the main force quietly completes most of their distribution in this up-and-down rhythm.

**The second signal is more subtle—tops are often the strongest**

This sounds contradictory, but the logic is clear. When the main force is distributing, they are in a tricky situation: they need to support the price strongly to give retail investors confidence to hold, while secretly reducing their holdings. If they sell too aggressively and cause retail investors to run first, they risk getting caught in a trap themselves. Therefore, the main force will sell while pushing the price up, even frequently hitting new highs to stimulate retail investors’ desire to chase the rally, using apparent strength to mask the real distribution actions.

On the chart, the trend may look solid, but when you open technical indicators, you will find various divergence phenomena—divergence after oscillation, divergence after a pullback and new high. Once you understand the logic behind these signals, reading the chart becomes much clearer.