Sideway After a Big Red Candle = Possible Continuation Setup (Not a “sure shot”)
After a big bearish (red) candle, the market often gives a small bounce:
2–3 candles try to move up, but fail to break the resistance created by that first big red candle.
When that happens, the bounce can turn into a trap, and the next move is often another bearish continuation candle.
✅ Entry idea
• Enter only after the trigger red candle
breaks/closes below its low (confirmation)
🛑 Invalidation / Stop-loss:
• Above the resistance line (top of the
first big red candle / swing high)
🎯 Target:
• Previous low / nearest support zone
• Often the low of the first big red candle
Note: This is not a guaranteed pattern. Without confirmation, fakeouts are common.
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