Let's delve into some alpha education.
How often have you encountered accounts exclaiming: „𝗕𝗿𝗼, 𝗜 𝘁𝗼𝗹𝗱 𝘆𝗼𝘂 𝘁𝗵𝗮𝘁 𝘄𝗮𝘁 𝘄𝗮𝗼 𝘁𝗮𝗁 𝗼𝗺, 𝘄𝗲’𝗿𝗲 𝗴𝗼𝗶𝗻𝗴 𝗳𝗼𝗿 𝗻𝗲𝘄 𝗵𝗶𝗴𝗵𝘀!”?
And suddenly, FOMO grips you, pushing you to hastily deploy your capital.
The next morning, poof! You find yourself buying the local peak.
So, how can you shield yourself from this blunder?
By scrutinizing imbalances.
Take Bitcoin, for instance, displaying a short-term downtrend (lower highs/lower lows), right?
But then, the price surges past the 0.38 Fibonacci level, triggering euphoria.. yet, do you notice what lies beyond?
What many overlook: imbalances.
Those zones often serve as price magnets, potentially attracting liquidity and causing reversals, as seen in this scenario.
You'll witness this firsthand as the price wicks precisely pause at those levels (FVGs).
Hence, to validate a robust reversal and safeguard your capital from impulsive moves triggered by FOMO or hyped-up discussions on social media, focus on high timeframe closures above these levels, rather than rushing in every time the price
spikes.
This is how you shield your capital and shield yourself from FOMO and hype that frequently flood
social platforms.
