📘 Daily Trading Lesson – Episode 12
December 24, 2025 by
#Hamayoon_1 How Does the Market Test Before the main Move?
🎯 Lesson Objective
In this lesson, you will learn:
Why the market becomes confusing before a big move
Why most traders get eliminated just before the main move
What exactly the market is testing and why
🔍 What is “Market Testing”?
Before any major move (up or down), the market needs to collect liquidity.
Liquidity includes:
Stop losses
Liquidations
Emotional long and short order
📌 Without liquidity, a big move is not possible.
That’s why the market enters a testing phase before the main move.
🧠 What Exactly Does the Market Test?
1️⃣ Trader Patience
The market wants to know:
Who is impatient
Who enters on the first small movement
Impatient traders = easy targets.
2️⃣ Stop Levels
Most traders place:
Long stops below support
Short stops above resistance
The market intentionally touches these levels.
3️⃣ Strength of Buyers and Sellers
The market tests with small moves:
Does the buyer have real strength?
Or is it just hype?
🔹 Real Market Testing Methods (Conceptual Examples)
🔸 Method 1: Fake Breakout
Price breaks resistance
Everyone thinks, “Breakout happened!”
Long positions open
❗ Suddenly, price reverses.
📌 Purpose:
Trigger long positions
Hit stop losses
Collect liquidity
🔸 Method 2: Quick Dump or Pump and Reversal
Example:
Market moves 5–10% in a few minutes
Then calms down
📌 Purpose:
Scare some traders
Make others greedy
It’s not the start of the main trend, just a market test
🔸 Method 3: Long Range (Exhaustion)
Market moves up and down for hours or days but doesn’t go anywhere.
📌 Purpose:
Tire out traders
Force them to exit wrongly
🔸 Method 4: Multiple Tests of a Level
A support or resistance is touched 3–4 times.
📌 Each time:
Orders become weaker
More stop losses collected
Then the main move happens.
⚠️ Very Common Trader Mistakes
Entering on the first move
Trusting a single strong candle
Thinking “this time it’s different”
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