$BTC Recently, in a post about the news, someone asked if news is good for long/short, right Bear. Today, G shares some misconceptions that traders encounter daily, whether right or wrong, let's put that aside...
1) Drawing resistance – support and confidently thinking the price will reverse when it hits this zone.
( Bear sees that many traders from various classes know how to draw, but they must understand that this is the liquidity concentration zone of MM, a battle between bulls and bears. For example, if 10 people are involved, 9 set TP and SL here. The job of MM is to create fake breakouts (false breaks of resistance/support), luring traders in, then just sweeping the SL and bouncing back up in frustration, right...? )
2) Misconception that funding rate should dictate trades: negative funding means to long, positive funding means to short.
( This needs to be combined with more on-chain data... )
3) Viewing the Long/Short ratio and thinking it directly affects the price. For example, many longs mean the price will drop, many shorts mean the price will rise.
( The price only moves when there's liquidity from spot or strong liquidations. MM often leads the price to areas with clusters of liquidation orders to gain momentum for a breakout... )
4) Watching the news and guessing good news = price increase, bad news = price decrease.
( News is just a tool of MM, they exploit fomo_fud to sweep both ends of everyone... )
5) To trade successfully, you must learn technical analysis from popular teachers, with high prices, learn all models, indicators that are supposedly high quality, trade only to win...
( Technical analysis is important to know and understand, but to win, traders need to manage capital, greed & psychology, not just pure technique🙃)
Wishing everyone a luckier May 🍀🍀🍀