wayofcryptos
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What is Volume and why is it your lie detector?
Let's analyze yesterday's topic in more detail.
Many beginners (like I was) only stare at the green and red candles. But the candles can lie. A whale with money can easily draw a beautiful rising candle in an empty market to lure the retail traders into long positions. However, faking real market interest is impossible.
Many beginners (like I was) only stare at the green and red candles. But the candles can lie. A whale with money can easily draw a beautiful rising candle in an empty market to lure the retail traders into long positions. However, faking real market interest is impossible.
Candles lie, but volume does not
Here comes the next day of training to an end. Today I analyzed why sometimes when analyzing the candlestick chart we are occasionally "lied to".
How to understand where the trap is? If we see a small candle (the price hasn’t increased much), but at the same time there is a HUGE volume column below - this is a signal of danger. This means that there is a meat grinder going on in the market. The crowd in euphoria is buying coins, while a large player quietly sells them their reserves (unloading), not allowing the price to go higher. This is a harbinger of an imminent trend reversal downwards. In such moments, it’s better to sit on the fence.
How to understand where the trap is? If we see a small candle (the price hasn’t increased much), but at the same time there is a HUGE volume column below - this is a signal of danger. This means that there is a meat grinder going on in the market. The crowd in euphoria is buying coins, while a large player quietly sells them their reserves (unloading), not allowing the price to go higher. This is a harbinger of an imminent trend reversal downwards. In such moments, it’s better to sit on the fence.
The first day of my retraining is complete. Today I dug into tokenomics and understood why the market punished me so harshly for my shorts.
Previously, my logic was primitive: "Soon the token unlock = price will drop = I open a short." It turns out that 90% of newcomers think this way. And that is why market makers use large unlocks to shave the crowd. The crowd opens shorts, a big player pushes the price slightly up, triggers their stop losses, and the price skyrockets on others' liquidations (as happened recently with $ARB ).
Now I understand that not all unlocks are the same. And blindly shorting the news is suicide for the deposit.
#BinanceSquare #WayOfCryptos #ARB
Previously, my logic was primitive: "Soon the token unlock = price will drop = I open a short." It turns out that 90% of newcomers think this way. And that is why market makers use large unlocks to shave the crowd. The crowd opens shorts, a big player pushes the price slightly up, triggers their stop losses, and the price skyrockets on others' liquidations (as happened recently with $ARB ).
Now I understand that not all unlocks are the same. And blindly shorting the news is suicide for the deposit.
#BinanceSquare #WayOfCryptos #ARB
Gambling Addiction and Futures
I lost a large sum (including mom's money) because I thought I 'felt' the market. A few successful futures trades blinded me, and liquidation quickly brought me to my senses.
I abandoned crypto for a long time, but I returned with a different mindset. Now my path is:
✅ Strict risk management (no more 'cutlets').
I abandoned crypto for a long time, but I returned with a different mindset. Now my path is:
✅ Strict risk management (no more 'cutlets').
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