Today I want to share with you a trading variable term: (structural premium)

Structural premium arises from two aspects;
A market consensus point, a technical K-line point, due to commonality there is reflexivity, resulting in a premium expectation for these points.
The premium generated by the market due to FOMO or excessive panic.
Whether it's A or B, exceeding a portion of market expectations is called structural premium. This portion of the premium may be caused by retail investor sentiment, or it may be because the market purely aims to harvest chips from one side.
If it is A, it is generally in a volatile state, under the premise of low liquidity, and only a small portion of funds is needed to complete it;
If it is B, the levels caused by this emotion are also uncontrollable for the main force, whether it's a target or a pit, on one hand due to emotion and on the other hand due to liquidation;
To avoid losses from structural premiums, we should adjust position ratios and extend trading cycles, making confirmations within the selected period. In this bull market from 2023 to 2025, the market often exhibits such situations. First, we need to avoid placing orders (especially with large funds). Secondly, we complete transactions in three trading cycles to verify whether there has been a valid breakout or breakdown.
Low liquidity malicious funds, if they cannot dominate the market, for instance, after a targeted acquisition, often pull back within a set period. For example, we often see the two days over the weekend, where prices rise or crash to release secondary market liquidity, and then, before the U.S. market opens on Monday, they are pulled back again. Don't take it personally; I didn't say it was the exchange, but rather mysterious funds.
Additionally, to supplement today's review content, if the chip structure of a target is diversified, especially for core targets dominated by institutions, the resistance level is far less effective than the support level. The resistance level can be said to be virtually nonexistent, and the weight of the resistance level should be gradually reduced.