Education Purpose post;
Most of new traders , enter long positions or buy in spot after seeing green candle immidiately after a big red candle.
Bro Crypto Doesnt work like this. If you do Scalp trading for 3-5 minutes then this strategy is fine.But 99% cases this strategy is wrong.
This is BTC 1H chart , See the selling pressure just above 1 green candle and most of new traders will buy at this point considering it a good entry but look how market responded immidiately after your buy. Most of cases market immidiately reverses back .
So ,Suggestion is dont panic or get victim of FOMO , Just wait and watch for atleast 4 hours after such dump .in these 4 Hours market will try to find a support and you will also get an idea if there is any more selling pressure or not.
There are alot of other things contribute while buying after such dump but i think the above mentioned points will save you from alot of losses and will make your investment decision better..đ
