The most common mistake made by trading beginners is staring at the support line on the chart and then placing an order blindly. But in fact, the validity of support depends on how the price behaves.
First, let's talk about poor support. When the price hits support and gets pushed down, with a long upper shadow that looks intimidating. What does this indicate? Someone wants to buy, but can't buy much, and gets hammered down. Such a level is not sustainable.
Next is okay support. The price shows signs of a rebound, but the strength is average, still leaving an upper shadow. This situation indicates that there are buyers stepping in, but their capacity is limited, and the rebound isn't decisive enough. At this point, you should ask yourself a question.
Finally, good support. When the price reaches this level, it gets pulled up immediately, with hardly any upper shadow, closing high. This truly indicates that funds are supporting it, and this level is genuinely defended.
The core logic is actually just one sentence: only when you see a rebound can you confirm that support is valid. If there's no rebound, placing an order is essentially gambling.
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CryptoTherapist
· 01-14 18:01
ngl this is literally just market psychology dressed up as technical analysis... the wick tells the whole trauma story, doesn't it? you're basically reading the emotional baggage of every failed buyer at that level. scary how many traders just yeet their money at support without waiting for the actual bounce confirmation tho... that's pure copium energy right there
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StablecoinEnjoyer
· 01-13 19:41
That's quite reasonable, but I've seen too many people rush in when they see support, only to get crushed through... The key point is still that, you need to wait for a rebound confirmation, otherwise it's just pure gambling.
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SlowLearnerWang
· 01-13 00:51
It's the same story again. Last time, I didn't wait for the rebound and went all in directly. I'm still stuck in it haha.
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TokenEconomist
· 01-13 00:51
actually, this is just supply & demand theory wrapped in candlestick language. the wick length literally tells you how much buy pressure failed—think of it as rejected demand. ceteris paribus, if buyers can't hold the line, it's not a support level, it's a trap
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MEVEye
· 01-13 00:48
To be honest, I’ve fallen into this trap before. I would buy as soon as I saw the support line, only to get crushed and thrown around. Now I understand that placing an order without a rebound is really just a reckless gamble.
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just_vibin_onchain
· 01-13 00:47
To be honest, I have a deep understanding of catching rebounds. I used to blindly chase support lines, only to get hammered badly.
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PumpBeforeRug
· 01-13 00:46
Exactly right, so many people are tricked into entering by the support line, they don't even see a rebound and go all-in, they deserve to be cut.
The most common mistake made by trading beginners is staring at the support line on the chart and then placing an order blindly. But in fact, the validity of support depends on how the price behaves.
First, let's talk about poor support. When the price hits support and gets pushed down, with a long upper shadow that looks intimidating. What does this indicate? Someone wants to buy, but can't buy much, and gets hammered down. Such a level is not sustainable.
Next is okay support. The price shows signs of a rebound, but the strength is average, still leaving an upper shadow. This situation indicates that there are buyers stepping in, but their capacity is limited, and the rebound isn't decisive enough. At this point, you should ask yourself a question.
Finally, good support. When the price reaches this level, it gets pulled up immediately, with hardly any upper shadow, closing high. This truly indicates that funds are supporting it, and this level is genuinely defended.
The core logic is actually just one sentence: only when you see a rebound can you confirm that support is valid. If there's no rebound, placing an order is essentially gambling.