Seeing 3 Key Signals to Escape the "Rau Hẹ" Trap in the Crypto Market

Candles K are not silent. The issue is whether you have enough patience and clarity to “hear” the language that big money is speaking or not. Have you ever experienced that very familiar feeling: just bought, the price drops; just sold, the price rises, as if the market always targets your small capital? I have been in that exact position – buying at the top, selling at the bottom, constantly becoming the “liquidity” for others. Only when I sat down, seriously reviewed each losing order, each candle, and each market phase, did I gradually realize: sharks don’t win because they are smarter, but because they understand the psychology of the majority better. Here are the 3 most important signals that, if you understand them, will greatly reduce the probability of being “liquidated.” Signal One: Fake Sideways – Genuine Stop-Loss (The “Boiling Frog” Trap) Sideways (sideway) is the most frequently appearing state on the chart, but the intent behind each sideways zone is completely different. A genuine stop-loss zone usually has the following characteristics: Price fluctuates within a narrow range, not sharply rising or fallingTrading volume gradually decreases over timeBad news appears but the price does not break through the important support zone This indicates a truth: the circulating coin supply is gradually running out, impatient holders have sold out, and most of the supply is now in the hands of big money. I once tracked a coin in early 2024, with the price hovering around 0.78 for nearly a week, daily range less than 3%, and volume shrinking. Most thought the coin “had no more story.” But just as everyone left, a strong bullish candle with high volume broke through 0.82, and within 2 days, the price surged to around 1.1. The difference between a stop-loss and a dump lies in a very small detail: If it’s a stop-loss: the price may briefly break support but will quickly be pulled backIf it’s a dump: support is broken with high volume and the price does not turn back Sharks will never let others buy cheap and sell high on their behalf. Signal Two: Fake Support Break – The Last Threat Before a Strong Rally This is the “most vicious” and also the most effective trick of sharks. Right before a strong rally, the price often suddenly breaks through an important support, destroying the entire technical structure. Most retail investors panic and cut losses, believing the trend has broken. But the ironic thing is: After that support break, the price quickly returns to the previous zoneThen a decisive upward move follows The key to identifying this is in the trading volume: Real break: high volume, panic selling clearly evidentFake break: low volume, indicating not many are willing to sell anymore There is a very true saying in crypto: “If it’s going down, no need to fake. If it’s faking, it’s preparing to go up.” A fake support break is essentially the final scare tactic, designed to chase out the weak-handed traders before the market starts to move. Signal Three: The Three Final Blows at the Top – When Sharks Start to Exit After a strong rally, sharks cannot sell everything in one candle. The sell-off usually leaves very clear traces on the chart. The three most dangerous signals at the top are:

  1. Multiple candles with long upper shadows Prices are pushed up repeatedly then pushed down, showing selling pressure is waiting above.
  2. Classic reversal candle patterns Like “Dark Cloud Cover,” “Three Black Crows,” or a strong bearish candle swallowing the previous bullish candle, especially with high volume.
  3. Divergence at the top on indicators Price makes higher highs but RSI, MACD weaken, not confirming the trend. This is a sign that buying power is exhausted. In May 2024, a hot coin failed three times at the top zone, then a “double top + bearish engulfing” pattern appeared. Within just 4 days, the price plummeted nearly 40%. This was not accidental but the completion of distribution. Summary: How to Avoid Becoming a “Cabbage”? From practical experience, I derive three survival principles: Don’t chase the price: The more hype, the higher the riskAlways analyze yourself, not follow rumors: Many “good news” appear just when sharks need buyersAlways have a clear trading plan: Entry point, stop-loss, take-profit points must be predetermined before entering Investing is fundamentally a game of perception. Sharks not only win with money but also with their ability to control the emotions of the majority. When you no longer react with fear and greed, their familiar tricks will gradually lose effectiveness. Learning and upgrading your mindset is the greatest asset in this market. When you understand how the market operates, you will no longer be led around.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)