Whenever we see price sharply moving upwards or downwards, be mindful, notice the speed that the candle retraces back up to…
This sharp retrace is to attack the shorts or the longs who have made a rush towards price and want to get in on the momentum of price dropping or rising….
This can be applied to everything. Forex and crypto….look at bitcoin as we speak, sharp retrace back up…does that mean it’s time to go long? Each to their own but be mindful, this could also be a set up to encourage the longs to come in, then drop price lower again to hit the liquidations of those longs also..
You see there is so much behind a retrace…the idea is to follow when the market maker has decided enough liquidity has been trapped in the opposite direction….then ride the wave or should I say the pattern in the direction price moves.