At the end of the month, especially December – the last month of the year, the financial market often experiences unpredictable volatility. This is the period when large institutions and investment funds restructure their portfolios, take profits, or balance assets in preparation for the new year.
Why you should not Long/Short close to the monthly candle closing time?
High volatility, unclear trend.
The trading volume usually decreases as retail investors take holidays, while large orders from institutions can create unusual fluctuations.
Assessing price trends becomes difficult, easily leading to wrong decisions.
Market sentiment is unstable.
At the end of the year, many investors take profits or cut losses to close financial books, creating buying/selling pressure that does not reflect the true value of the assets.
Emotional factors such as FOMO (fear of missing out) or FUD (fear, uncertainty, doubt) can easily influence.
Easy to fall into price traps.
Strong increases or decreases close to the candle closing time are often "false breakouts." Long/Short orders at this time are easily stopped out, causing losses.
Advice:
Be patient and wait for the monthly candle to close, and analyze price action carefully before making decisions.
If you want to trade, prioritize shorter time frames, but ensure tight stop-loss settings.
Focus on risk management rather than trying to "catch the top or bottom."
Remember, preserving capital is more important than trying to make profits in high-risk moments.
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