🧠 WHY LONG RED CANDLES CAUSE ERRORS FOR BEGINNERS
When a long red candle appears on a chart, it often creates a sense of panic among beginner traders. This type of candle indicates strong selling pressure and a sharp downward movement.
But it is precisely this moment of panic that leads to frequent mistakes.
🔸 Hasty Exit
Faced with an impressive red candle, many close their position without thinking, even if their plan has not yet been invalidated. They forget that this candle may simply represent a temporary excess of volatility.
🔸 Impulsive Entry
Some beginner traders think that after a big drop, the price will necessarily continue to fall. They enter a sell position at the lowest point without waiting for confirmation or analyzing the context. This exposes them to a strong rebound.
🔸 Confusion on Key Levels
A long candle can temporarily break a support or resistance level. This false signal can trap beginners who believe the break is definitive when it is sometimes just a liquidity trap.
🔸 Lack of Perspective
The red candle may seem dramatic on a small timeframe, but on a broader chart, it can be insignificant. Not taking a step back leads to hasty decisions.
➡️ To avoid these mistakes, it is essential to stay calm, analyze multiple timeframes, and always rely on your trading plan. A long red candle is a signal that deserves interpretation, not fear.
Like and share if you want more practical tips on mistakes to avoid in trading
#BougiesRouges #PlanDeTrading #PsychologieDuTrader