🐳TRAP №4
We continue to analyze the ways in which major players confuse ordinary traders. Today, one of the most cunning traps is up next:
🤖 Manipulation: 'Liquidation' 🤖
🧹This is a classic 'cleaning' market tactic. Its main goal is to get rid of 'extra' players (passengers) before the price moves in the planned direction.
🐳How does it work? The manipulator artificially pushes the price in the opposite direction to:
Trigger your stop-losses.
Provoke panic and force you to close positions at a loss.
Gather liquidity at your expense for real movement.
✌️ This manipulation most often occurs right before a powerful price pump or dump.
😎Be vigilant and don't let the market shake you out of the game too early
💡How to recognize a 'Liquidation' and not lose your deposit
To avoid becoming 'fuel' for a major player, look for these signs on the chart:
False breakout (SFP): The price sharply breaks through a strong support or resistance level where many stop-losses are accumulated, but does not consolidate there and quickly returns.
💡Anomalous Shadows (wicks): Long candle shadows appear on the chart that 'pierce' significant zones. This is liquidity gathering.
Volume spike: At the moment of sharp movement (liquidation), trading volume sharply increases — this is the manipulator buying or selling assets from panicking retail traders.
Flat after liquidation: Often after a sharp jump in one direction and a return, the price freezes for a short time (accumulating strength), after which true movement follows.
💡 Tip
Do not set stop-losses just 'behind the level' where everyone places them. Let the price 'breathe' a little or enter the trade only after you've seen a false breakout and a return of the price to the trading range.
🤖While the market chooses a direction, it's the perfect time for some to succeed and for others to learn to recognize such topics😁
🤖Post prepared for the community @TradeNet_3000_ai
Part 5 in the next post.
Subscribe and make yourself comfortable.🤝