PRICEACTION

Like many new traders, I was enticed by the allure of quick profits. I chased every indicator, reacted impulsively to news, and followed social media hype. This approach led me to lose $10,000 in a matter of weeks.
What Changed Everything?
I stumbled upon a story on Medium titled "Bounce Back from Blow Up: A True Story of Recovering from Trading Failure" . The author shared how they lost 100 million rupiahs by making similar mistakes—overleveraging, ignoring risk management, and relying on unreliable signals. Their turning point was embracing price action trading, focusing on the actual movement of price rather than lagging indicators.

The Strategy That Turned It Around
By studying price action, I learned to identify key support and resistance levels and observe how price behaved around these areas. I began to recognize patterns of rejection, such as bullish engulfing candles at support or shooting stars at resistance. This approach allowed me to make more informed and confident trading decisions.

🔹 Bullish Rejection at Support
Price dumps into support → bullish engulfing candle forms → wick rejection confirms buyer strength → I buy the confirmation, not the fear.
🔹 Bearish Rejection at Resistance
Price rallies into resistance → rejection candle appears (e.g., shooting star) → bears step in → I short the failure, not the hype
The Results?
✅ Improved entry and exit points
✅ Enhanced risk management
✅ Reduced emotional trading
✅ A clearer understanding of market dynamics
$SOL
Indicators can lag, and news can be misleading. But price action provides real-time insights into market sentiment.
Let the chart speak. Learn the rejection. Trade with precision.
$BNB
If this resonates with you, share it. Someone else might need this insight today.
#TradingStrategy #BullishRejection #BearishRejection #PriceAction #TradeSmart

Ever set a stop loss only to watch the market hit it, reverse, and leave you fuming? 😤 You might be falling victim to stop hunting, where big players trigger your stops for their gain. Here’s a game-changing tip for price action traders: don’t place your stop loss where everyone else does. Let’s break down how to place stops strategically and keep your trades safe! 🚀
Why Stop Losses Matter
In price action trading, where you rely on chart patterns like support, resistance, or candlestick setups, a stop loss is your safety net. It’s an order to exit a trade at a set price to limit losses. For example, if you buy a crypto like $BTC at $105,000, you might set a stop loss at $103,000 to cap your risk. But where you place that stop can make or break your trade.
The Trap: Obvious Stop Loss Levels
Many traders place stop losses at predictable spots, like just below support or above resistance. For instance, if $LINK has support at $14, traders often set stops at $13.90. This creates clusters of stop orders that large players—think hedge funds or market makers—can target. Why? Because triggering these stops causes a flood of buy or sell orders, creating volatility they can exploit.
This is called stop hunting, a controversial tactic where “whales” push prices to hit these clusters, forcing retail traders out before the price reverses. It’s like the market saying, “Gotcha!” before moving in your favor. 😣
The Hack: Place Stops Away from Market Structure
To outsmart stop hunters, place your stop loss away from obvious levels. Here’s how:
Use Volatility Measures: The Average True Range (ATR) shows an asset’s average price movement. If $STO’s ATR is $0.005, set your stop 1.5–2 times ATR away (e.g., $0.0075–$0.01 below your entry for a long). This gives your trade room to breathe.Avoid Round Numbers: Instead of $13.90 below a $14 support, try $13.75. It’s less likely to be targeted.Trail with Price Action: In a long trade, move your stop below new higher lows as the price rises, keeping it dynamic and less predictable.

Real-World Example
Imagine you’re trading $STOUSDT, currently at $0.1000, with support at $0.0950. Most traders set stops at $0.0945. Instead, you use the ATR ($0.003) and place your stop at $0.0920 (2x ATR below support). When the price dips to $0.0940, triggering others’ stops, yours stays safe, and the price rebounds to $0.1050. You’re still in the trade, while others are out!
Another example: For BTC at $105,000 with resistance at $106,000, short traders might set stops at $106.10. A whale could push the price to $106.15, triggering those stops, then let it drop. By setting your stop at $106.50, you avoid the trap.
Spotting Stop Hunting Zones
Look for areas with long candlestick wicks or sharp reversals near support/resistance. These often indicate stop hunting, as prices briefly break key levels before snapping back. On $LINK ’s chart, a wick below $14 support that quickly reverses might signal whales targeting stops. Avoid placing your stop in these zones.
Extra Tips to Stay Safe
Mental Stops: Decide your exit point but don’t place an order, closing manually if hit. This requires discipline and constant monitoring.Alerts: Set price alerts near your stop level to assess market conditions before exiting.Risk Management: Risk only 1–2% of your capital per trade. For a $10,000 account, a $0.01 loss on $STO (100,000 units) is $1,000—too much! Adjust position size to stay within your risk limit.Test Your Strategy: Backtest your stop placement on historical data to ensure it suits your trading style.
The Bigger Picture
Stop hunting is debated—some see it as market manipulation, others as natural liquidity-seeking. Either way, strategic stop loss placement can protect you. With Bitcoin at ~$104,648 and altcoins like $LINK and $STO volatile, smart stops are crucial for navigating crypto’s wild waves.
Ready to level up your trading? Try this hack in your next trade and share your results below! 💬
#priceaction #tradingtips #stoploss #cryptotrading #stoploss 🔍