Many beginners, when they see a large red candle dropping below support, get scared and sell quickly...
But what they don’t know is that sometimes this is not a sign of collapse... it's a calculated game by the whales called:
“Bottom Hunter” 😈🕯️
Let's explain it simply:
📉 When there is clear support on the chart, people start placing stop-loss orders below it, right?
The whales know this well, and that's why they do the following:
1 They enter the market with strong sell orders suddenly
2 The price drops very quickly and breaks support
3 People sell out of fear
4 The whales buy all the quantities at a cheaper price
5 The price rises quickly again and closes above support once more
👁️ What does the candle look like?
A long candle with a strong downward 'tail', but the close is above support.
That means the candle broke but didn't settle below!
📌 When do you consider it a strong entry signal?
✅ If it happens after a long period of boredom
✅ If the break is fast and the close is above support
✅ If the price then couldn't drop again to the same area
But be smart... don't enter on the first candle directly.
⏳ Wait for the price to return and 'test' the same area, and prove that it really couldn't break it.
And this is a very safe entry, because you are buying at a moment of artificial weakness!
💡 Tip for beginners:
The first time you see this break, you will feel it's a collapse...
But if you look at the candles that follow, you'll find it was a consolidation move, not a liquidation!
🔍 A coin to experiment with:
$STMX –
Long-tailed candles appeared after a big drop...
If it maintains support, watch for a retest, it could be a very strong opportunity for a smart entry