THIS IS WHAT THE MARKET WILL MAKE YOU THINK EVERYTIME IT OPENS A SPECIFIC TIME (SECRET TRICK FOR TRADING SUCCESS)
Most of the time the market will make you think of these possibilities immediately. Although, there are common misdirection that you can look out for which will help you in your trading journey!
#CRO is a great example for what we will showcase as a secret market technique that the market movers does in order to secure more liquidity in the market which is pretty normal. The formations of the candlestick patterns (in this chart) is almost showing a morning star pattern for its weekly timeframe. Just a very small specific information, morning star patterns can be acknowledged with the 1st candlestick as a bearish candlestick that is usually longer than the 2 candlesticks coming from a heavy decline. 2nd candlestick that has a small body where buyers and sellers are fighting for the position (there are also times when accumulations happen from this level and 3rd candlestick as a bullish candlestick usually becoming a bullish engulfing candlestick becoming a point of reversal. So the overall decline that happens for a single token once it halts its movement we immediately register into our mind that a morning star might happen. This really happens although patience is the key to determining the validation of its reversal. For example, CRO's 2 weekly candlesticks almost looked identical to a morning star pattern. However, there is a tendency for this token to have its current weekly candlestick to become bearish since it just became bullish due to the fact that retracements happen. Thus, observing these three candlesticks are the key to understanding the pattern. The market may oftentimes show us the movement of everything in the market. Although, the real test starts with how patient you are as a trader who wants to validate the existence of those patterns.
Stay wise, trade cautiously.
