Why does the price go down or up just when I enter a trade?
If it has happened to you that you just enter a trade and the price immediately moves against you, believe me, you are not alone. It is one of the most frustrating experiences in trading and seems almost personal, as if the market is spying on us. But the reality is that there are clear reasons behind this, and understanding them can make a difference in our trading.
Today I am going to teach you why this happens and, more importantly, how to avoid it.
1. Timeframes and Market Noise
Something I've noticed is that many times I analyze the market on 1H or 4H charts, but when I go down to lower timeframes to refine my entry (like 5M or 15M), the price seems to be overbought or oversold, and in the end, my trade moves against me.
Why does this happen?
The market in lower timeframes has a lot of noise, meaning erratic movements that can make us enter at a bad time. What seems like a simple pullback in 1H, in 5M can look like a trend change.
📌 How do I solve it?
• I always synchronize my analysis. If I make my decision on 1H, I use lower timeframes only to improve the entry, but without letting them confuse me.
• I wait for multi-timeframe confirmation. Before entering, I review how the market structure is in different timeframes.
2. Liquidity and Market Manipulation
Something that was hard for me to understand is that the market seeks liquidity before actually moving in one direction. What does this mean?
The big players (banks, market makers, investment funds) need a lot of volume to open positions, and they find that volume where there are stops and pending orders.
🔹 If I enter a trade at a point where there are many stops from other traders, it is likely that the price will make a false move to take us out before moving in the right direction.
📌 How do I solve it?
• I identify liquidity zones before entering. If I see that my entry is at a point where there are many obvious stops, I wait for the price to 'catch' them before entering.
• I avoid buying at obvious highs or selling at obvious lows. I prefer to wait for the price to make a false breakout and then enter in the correct direction.
3. RSI and False Signals in Lower Timeframes
When I started using the RSI, I thought that if it indicated overbought or oversold, the price would reverse immediately. But I realized that in strong trends, the RSI can remain overbought or oversold for a long time without the price reversing.
That's why I learned not to use the RSI alone, but with other confirmation elements like supports, resistances, and order blocks.
📌 How do I solve it?
• I use the RSI with confluences, not in isolation.
• I check for divergences: if the price makes a new high, but the RSI does not, then I have a more reliable signal.
4. FOMO and Impatience
Something that has happened to me (and I know it has happened to many) is that I see a clear setup and feel that if I don't enter now, the opportunity will slip away. But many times, those moments are when everyone wants to enter at the same time, and the market takes advantage to do the opposite.
When we enter due to FOMO, we tend to buy at the highest point or sell at the lowest, right where the market usually takes liquidity and turns against us.
📌 How do I solve it?
• I avoid entering impulsively. If I feel rushed to enter, it is a signal that I should wait for more confirmations.
• I accept that there will always be another opportunity. The market moves every day; I don't need to rush.
Conclusion: Trading Is Not Against You, It's a Game of Probabilities
The price does not move against me because the market 'hates' me. It moves this way because:
✔️ Lower timeframes have too much noise.
✔️ The market seeks liquidity before moving.
✔️ Indicators can be misleading if not used correctly.
✔️ Impatience and FOMO make us enter at dangerous moments.
If we adjust our strategy and start thinking like the big players, we will stop feeling that the market is against us and start taking advantage of these situations in our favor.
💬 Has this happened to you? How do you handle it? Let me know in the comments! 🚀
Thank you for reading, I hope you have a great day. Are you interested in learning more about trading, cryptocurrencies, or finance? Contact me, I would be happy to help you take your first steps or improve your knowledge. Let's grow your financial potential together!
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