Why do I notice a decrease in the price of this coin when I buy and the opposite happens when I sell? The reason may be that traders are fooled by a bullish green candle to buy, then the price will fall and incur losses.
What we are seeing is a scenario that can occur in the financial markets, including the cryptocurrency market, and is known as a âtrapâ or more commonly known in trading as a âBear Trapâ. when decreasing or "Bull Trap" when increasing. These scenarios show misleading price movements that can lead traders to believe that a large movement is happening in a certain direction (up or down), encouraging them to enter the market. However, a countermovement follows, which can lead to losses for traders who relied on the initial signal.
To avoid these situations, it's best to keep a few things in mind:
1. Technical analysis:
Use technical analysis methods and do not rely solely on recent price movements. Review support and resistance levels, market indicators and other candlestick patterns.
2. Fundamental analysis:
Find out about news and reports that may affect the cryptocurrency market.
3. Risk management:
Always have a risk management strategy. Determine an acceptable stop loss point before entering any trade.