In trading, especially in highly volatile crypto, a 'trend' that is not confirmed is merely a fantasy or a trap.
1. A trend must be confirmed by price action.
Price must break through important resistance/support levels with sufficient volume.
After the breakout, there must be a successful pullback or retest (the price returns to test the area just broken and then bounces in the correct direction).
A new trend will typically have a clear structure of higher highs or lower lows.
2. No confirmation = Trap.
Breakouts that do not retest or are reversed (false breakout) are often traps.
Traps often occur in areas where many traders are placing orders based on textbook patterns without checking confirmation factors.
3. Defensive principle.
Always wait for confirmation signals instead of jumping in immediately when the price breaks a level.
Use volume, momentum indicators (RSI, MACD), and larger time frames to filter out traps.
4. Psychology.
Traps often prey on greed or the fear of missing out (FOMO).
A cautious trader knows that 'missing an opportunity is better than losing money in a trap.'