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The Volume Trick: A Bullish Mirage 📈Trading cryptocurrencies often requires deciphering the subtle cues that the market offers. One such phenomenon is the apparent decrease in trading volume while prices continue to climb. While this may seem like weakness, it can, in fact, be a trap for shorts and a strong bullish signal. Let's dive into this intriguing market dynamic. Understanding the Volume Puzzle: Trading volume typically reflects market participation and strength. A decrease in volume might suggest waning interest or weakening momentum. The Deceptive Setup: Sometimes, as prices rise, trading volume shrinks, creating the illusion of market fatigue. This scenario may lead short-sellers to believe the market is losing steam. The Reality: Contrary to appearances, this setup often serves as a trap for shorts. It may signify that long-term holders are not rushing to sell, indicating strong hands. The Bullish Implication: A market that can sustain or increase prices with lower volume is demonstrating resilience. This can be a precursor to a significant bullish move. Trading Strategy: Navigating the Volume Mirage Traders should exercise caution when interpreting volume patterns. A decrease in volume amid a price rise should not be automatically seen as bearish. Risk management remains vital, as markets can be unpredictable. Conclusion: The Volume Illusion Recognizing the subtleties of trading volume can provide valuable insights into market dynamics. When volume decreases but prices continue to rise, it often confounds short-sellers and sets the stage for a bullish surge. Remember that trading is both an art and a science, and making informed decisions is key in the crypto landscape. Stay vigilant, adapt to changing conditions, and, above all, trade wisely. As we navigate the complexities of the crypto market, let's keep an eye out for these volume tricks that may just be a prelude to a bullish rally. 📊🚀🌐 ❗See related ideas below❗ Don't forget to like, share, and leave your thoughts in the comments! 💚🚀💚
BINANCE:BTCUSDLong
by Yaroslav_Krasko
Fibonacci Trick for measuring Risk to Reward RatioIf you don't use your fibb tool much, (save your settings as a template first if you do) or for just a quick check to see if there is enough reward for the risk in the trade, you can set up your Fibonacci in increments of 1 (2.5 is 1:1.5) Do this as far as you like. You can extend lines left or right to check if the R Ratio you are looking for will fit this market structure, or if you should wait for a better set up. I happen to see this in a YouTube video, and thought it was very interesting and more than useful... The settings are as follows : 0 - loss/stop loss price 1 - 1 unit of risk (100 percent) 2 - 1 unit of risk plus 1 unit of reward (1:1) 2.5 - 1 unit of risk, 1.5 unit reward (1:1.5) 3 - 1 unit of risk, 2 unit reward (1:2) ..... and so on. Then just save it as a template for quick set up later -- Example of use 6 (600 percent) is 1:5. Just subtract 1 for the risk and the remaining is the reward ratio. Each 100 percent mark is a single unit of risk (-1) In MT4 its much better to see it directly, as you can label the levels how you wish (using the same formula)
Education
by ForexStoryteller
1
Machine Learning - Algos trying fractal Cup and handle patternsYou can clearly see the difference in terms of relative strength. The market is easy manipulable ... the algos in pattern recognition are squeezing shorts by creating and following previous patterns that are in "vogue" (Inverted IH&S), sort of bullish flag that are in fact a hidden handle in a Cup and Handle pattern and so forth. Pay attention to the manipulators, do the opposite of your initial thoughts and see if the algos will squeeze by trying new (old) patterns out .... The market then indeed went back to 5878 after it bounced back from the current low of the day (need to check smaller time frames)
TVC:CAC40
by UnknownUnicorn569872