The characteristics of wash trading

Large buy orders aggressively enter the market, causing a rapid and sharp increase in stock prices.
Prices then quickly retreat, repeating this pattern multiple times.
The entire process occurs suddenly, usually completing the surge and retreat within a few seconds, catching retail investors off guard (as the inflated stock prices are manipulated by institutional players).

Repetitive Patterns and Lack of Retail Response:

The cycle involves sudden surges and rapid declines, with retail investors often unable to react in time due to the quick and unexpected nature of the price movements.

Formation of Illusory Demand:

At a certain price level, a large sell order acts as a significant resistance point, while substantial buy orders underneath create a false impression of strong demand.
This is a critical point where retail investors are most vulnerable and likely to enter the market.

Post-Manipulation Price Behavior:

After the manipulated surge, the stock price may either return to a calm state, continue trading sideways (especially in the early stages of unloading), or experience a significant decline (especially in the later stages of unloading).

Extended Duration:

Wash trading typically spans over multiple trading days, lasting 3 to 5 days or even longer.
Despite the short-term accumulation of high trading volumes, the stock price may show minimal or no upward movement, creating a situation where volume increases but prices remain stagnant or experience limited gains (volume rises, prices remain flat, known as "Volume increases and price levels remain stable, while volume increases and stagnates").