💭 How to Spot Fake Signals and Avoid Traps? (Survival Secret for Beginners)
💡In the cryptocurrency market, not every buy or sell signal is worth acting on. Fake signals are the primary reason many beginner traders lose money.
1. Don't enter based on just one candle:
An engulfing or reversal candle on a small timeframe doesn't necessarily mean a trend change; wait for confirmation.
2. Monitor liquidity and volume:
A signal without support from high trading volume is often a trap. Liquidity supports real movement.
3. Check the price position:
Did the signal appear at strong support or resistance? Or in the middle of the range? The position determines credibility.
4. Don't ignore the overall context:
Is the trend bullish or bearish? Counter-trend signals require additional strength to succeed.
5. Use a time filter:
Signals that repeat across multiple timeframes are considered stronger and more reliable.
💡Success doesn't come from the number of trades, but from avoiding the bad ones.
#SmartTrading #cryptosignals #FakeBreakouts #BinanceFeed #TradingTips
Next lesson:
How to smartly determine the right time to exit a trade?
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