🎯 Understanding Market Structure Through a Single Monthly Candle
📊 Each monthly candle tells a story - made up of 4 weekly candles. Let's break it down step by step:
1️⃣ Fake Range Opening 🎭
The first candle often creates a false directional move, luring traders into a liquidity trap. This move generates liquidity for larger players.
2️⃣ Impulsive Directional Move ⚡️
The second candle reveals the true intention of the market, moving strongly in the desired direction to capture momentum.
3️⃣ Continuation or Reversal 🔄
The third candle can continue the trend or start a reversal depending on market dynamics and liquidity zones.
4️⃣ Near-term stability 📉
The fourth candle usually consolidates or slows down. It often lacks significant expansion as the market finishes its activity for the month.
💡 This structure applies to all timeframes — from monthly charts to 1-minute charts. The market moves in fractals, which means the same principles apply universally.
🚨 Why is Bitcoin moving down?
Currently, Bitcoin (BTC) is moving down, which could create an initial false move for this month. 🔍 The real move could be upward, in line with the candle structure. Being patient and monitoring key liquidity areas is crucial.
"Trade smart, not emotionally"
