The essence of emotional misjudgment is the market's 'spring effect'
When prices briefly drop below support levels and then quickly rebound (like a spring that has been compressed to its limit), it is essentially the main players creating panic and uncertainty, concentrating on releasing short positions, and inducing retail investors to sell their holdings, thereby seizing opportunities at low prices.
The 'emotional spring' also exists in the market—when collective panic or euphoria is stretched too far, it often indicates that a reversal is imminent.
If you are 'misjudged' and stop-loss during market panic, or caught in a bubble during inflated prices, you are essentially being manipulated by the main players controlling the trading rhythm through emotions.
How to identify 'misjudgment' signals?
Volume-price divergence: Prices plummet but trading volume shrinks abnormally (retail selling is nearing its end);
Extreme emotion indicators: Intense discussions on social media, news headlines that are extremely pessimistic/optimistic;
Technical support: A 'long lower shadow' or 'high-volume doji' appears near key support levels.
Opportunities always exist in the market, but the cost of uncontrolled emotions is permanent capital loss. #币安Alpha上新 $BTC $ETH $XRP