🧵 Thread 8 – How to identify market traps before entering a trade on Binance ⚠️📉
Many fall into false breakouts and lose money for not seeing the signals. Today you will learn how to detect common market traps and how to avoid them.
Let's get into the thread! 🧵👇
1️⃣ What is a market trap? It is when the price simulates a breakout or change in direction, but then it abruptly returns, trapping traders who entered late.
2️⃣ The most common are: 🔹 False breakouts of support or resistance 🔹 Manipulation candles (long wicks) 🔹 Breakouts without volume 🔹 Contrary signals just after entering
3️⃣ How to avoid them – Step 1: Observe the volume 📊 If the price breaks a key level without volume, be suspicious. Real breakouts are usually accompanied by an increase in volume.
4️⃣ Step 2: Look at the market structure 📈 Is the price still making higher highs and higher lows (bullish)? Or is it already breaking that sequence? The structure does not lie.
5️⃣ Step 3: Wait for confirmation 🕒 Do not enter on the direct breakout. Wait for the pullback or the second candle. Professional traders do not enter impulsively; they wait for validation.
6️⃣ Step 4: Use signal candles Avoid trading just after candles with long wicks or reversal candles. Those candles indicate indecision or manipulation.
7️⃣ Pro tip: Combine structure + volume + candle confirmation. 👉 Only if all 3 factors are aligned, consider entering.
8️⃣ Conclusion: Not everything that glitters is gold. In Binance and any market, learning not to enter is as valuable as knowing when to enter.
🔁 Have you fallen into a trap before? ❤️ Like if this helps you 🔁 RT so no one else falls for it