02 types of "technical traps" that everyone should know when monitoring price charts and avoid (especially if trading with the trend).
I explain it simply and understandably like this:
1. Pullback:
Pullback is when the price has a slight adjustment (temporary decrease) within a main upward trend.
It's like the price is "taking a break" before continuing in the main trend.
For example: The price of BTC is rising from $80,000 to $84,000. Then it slightly decreases to $82,500 and continues to rise → that is called a pullback.
Trader's goal: Watch for pullbacks to buy at a good price level (often near EMA13 or EMA50).
2. False Breakout:
False breakout is when the price breaks through a resistance/support level, but cannot hold it and quickly reverses back.
It's like the price is "pretending" to break resistance to "trap" buyers, then reverses sharply downwards.
For example: BTC breaks $84,300 (resistance), rises to $84,500 but quickly drops back to $83,000 → that is a false breakout.
Trader's goal: Avoid being "trapped" when seeing the price just break resistance and entering a trade immediately. It’s better to wait for confirmation (such as closing a candle above the breakout area with strong volume)
#SECGuidance
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