In an uptrend, excitement and greed run high. But smart traders don’t chase — they analyze when the market is about to reverse.
Watch carefully for this subtle but powerful structure:
▶️ 2 Strong Green Candles → 1 Minor Green Candle → 2 Strong Green Candles → Reversal Energy Building!
What’s happening under the surface?
First Push Up: Two strong green candles show aggressive buyer control. Bulls are fully in charge.
Short Pause: A small green candle forms — momentum slows down slightly but buyers still look confident.
Second Push Up: Again, two strong green candles appear — the last effort to stretch the trend higher.
Now focus:
Are the last two green candles smaller than the first two?
Are long wicks forming at the tops (showing selling pressure)?
Is volume lower than the initial push?
If yes — it’s a clear sign of buyer exhaustion.
The market is climbing, but with less and less strength.
This is the silent danger zone:
New traders get trapped in FOMO (fear of missing out).
Smart traders prepare to exit or short the market.
Key Confirmations:
1. Weak Higher Highs:
Price makes new highs but with smaller candles and less aggression = Weak breakout = Reversal brewing.
2. Volume Behavior:
Volume drying up while price rises = classic bull trap building.
3. Indicators:
RSI starts showing lower highs while price shows higher highs = Bearish divergence = huge red flag!
Golden Rule:
When greed is maximum but strength is minimum — the top is close.
Summary:
➡️ 2-1-2 Structure in Uptrend = Market showing signs of topping out.
➡️ Don’t chase highs — prepare for the reversal smartly.
➡️ Patience + Confirmation = Catch the reversal before it’s obvious.
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