Investment Traps and Opportunities | Analysis of Double Bottom Manipulation Reversal Entry
In the market, the double bottom pattern is often seen as an important signal for trend reversal. However, a small mistake can lead to falling into a 'manipulation trap.' How to distinguish between true and false signals and grasp the safe entry timing is a skill that every trader must master.
1. Double Bottom Pattern and Manipulation Trap:
• Double Bottom: Two low points form a horizontal support area, initially indicating an increase in buying power.
• Manipulation: The market quickly reverses after breaking support, attracting shorts to enter, thereby creating conditions for the main force to accumulate positions.
Key: If you see the price fake breaking support and then quickly rebounding, be wary of manipulation signs.
2. Entry Timing and Order Zone:
• Bullish Order Block: After market manipulation is complete, prices usually return above the order block (support area).
• Entry Point: When a bullish signal forms after the price returns to the support area, entry can be considered.
Tip: Be sure to wait for pattern confirmation before acting to avoid chasing prices too early.
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