How to spot when a trend is secretly dying (even when price is still at the highs):
1. Price smashes above resistance → everyone screams “moon time”
2. But then… nothing. Candles get tiny, momentum dies, price just sits there getting rejected over and over.
That tight range right after the breakout? That’s the distribution zone. Smart money is dumping into the hands of greedy late buyers getting ready to be the exit liquidity.
3. Then price drops back BELOW the breakout level → fakeout confirmed. Bulls couldn’t defend it. Trap sprung.
4. Price comes back up ONE LAST TIME to retest that level from underneath. If it gets smacked down again → previous support officially flipped to strong resistance. Sellers now fully in control.
Breakout → Failure → Fakeout → Rejection = Trend is dead, reversal incoming.
This pattern is pure gold on daily/weekly charts. Higher timeframes don’t lie. Noise gone, manipulation clear.
Most people buy the breakout.
I wait for the rejection and load shorts when it fails the retest.
Save this post. It’ll make you a lot of money when everyone else is getting rekt chasing strength that isn’t there.
