The "Elastic Effect"
Vertical spikes are unsustainable over time because the market needs to balance out. Think of the price like a rubber band: if you stretch it too much and too fast, at some point it has to snap back.
The golden rule: The price always returns to test its moving averages or previous support levels on the 1-hour or 4-hour chart.
Discipline: If the train has already left and you're late, let it go. The market provides opportunities every day; missing a pump doesn't cost you money, but entering poorly can wipe out your account in a couple of red candles.
Waiting for the retracement with a cool head is what separates a trader who makes a living from this long-term from one who just burns accounts on impulse.
#CryptoTrading #TechnicalAnalysis #CryptoCommunity #BinanceFutures
Vertical spikes are unsustainable over time because the market needs to balance out. Think of the price like a rubber band: if you stretch it too much and too fast, at some point it has to snap back.
The golden rule: The price always returns to test its moving averages or previous support levels on the 1-hour or 4-hour chart.
Discipline: If the train has already left and you're late, let it go. The market provides opportunities every day; missing a pump doesn't cost you money, but entering poorly can wipe out your account in a couple of red candles.
Waiting for the retracement with a cool head is what separates a trader who makes a living from this long-term from one who just burns accounts on impulse.
#CryptoTrading #TechnicalAnalysis #CryptoCommunity #BinanceFutures