El algoritmo siempre juega con tus stops
The KOSPI just gave a masterclass in how the algorithm works.
June 2: index marks a local high. Everyone places stops just below that level.
June 18 and 19: price breaks above the June 2 highs. Greed activates. Retail opens leveraged longs at the breakout, convinced the trend is resuming.
June 23: 10% crash. Trading halted twice in 24 hours.
The algorithm did not break above the highs because the trend was strong. It broke above the highs because it knew exactly where the buy stops were sitting. It needed that liquidity before it could move the other direction.
This pattern does not only happen in Korean equities. It happens in crypto, in commodities, in every liquid market where enough participants cluster their stops at the same level.
The breakout that everyone sees is often not the beginning of a trend. It is the trap before the reversal.
How do you distinguish a real breakout from a stop sweep? $BTC $BNB #比特币 #加密货币 #币安
The KOSPI just gave a masterclass in how the algorithm works.
June 2: index marks a local high. Everyone places stops just below that level.
June 18 and 19: price breaks above the June 2 highs. Greed activates. Retail opens leveraged longs at the breakout, convinced the trend is resuming.
June 23: 10% crash. Trading halted twice in 24 hours.
The algorithm did not break above the highs because the trend was strong. It broke above the highs because it knew exactly where the buy stops were sitting. It needed that liquidity before it could move the other direction.
This pattern does not only happen in Korean equities. It happens in crypto, in commodities, in every liquid market where enough participants cluster their stops at the same level.
The breakout that everyone sees is often not the beginning of a trend. It is the trap before the reversal.
How do you distinguish a real breakout from a stop sweep? $BTC $BNB #比特币 #加密货币 #币安