I lost more money on green candles than red candles.
My biggest losses never came at the high. It came on that one calm candle in the middle where I was already in profit and feeling smart.
You know that candle. Price goes 4-5 candles sideways, very tight, very boring. You feel calm. You think let me add here, this is safe.
I used to add there every single time.
Then one wick comes, cleans that whole boring range and then market goes exactly where I thought. Without me.
I thought operators hunt high and low. They don't. They stopped doing that long back because everyone puts SL there now.
They hunt our limit orders. Because my stop is market order, it gives them slippage. My limit order in the middle gives them easy fill for their big order.
So how to find that middle zone before it gets hunted?
It has 3 fingerprints. I check this now before adding anywhere.
First, volume. In that tight 4-5 candle range, volume suddenly drops 40-50%. Everyone thinks no interest. No. They pulled their orders. They made it dead on purpose so you feel safe to place your limit.
Second, order type. In that zone if you see time and sales, you will see only limits piling up. No big market orders. Everyone is waiting to buy on limit thinking it's support. That pile is the liquidity.
Third, location. This zone never comes at high or low. It always comes after first leg, in middle of move. Because they need liquidity in middle to fill their remaining quantity, not at high.
That is the trap. Tight range + dead volume + only limits.
Now I do opposite. I don't add where I feel safe. When I see those 3 things together and my hand wants to add, I stop. I wait.
I let one sharp wick come and eat all those limits. I let order book become empty.
The candle after that wick is my real entry. Because now there is nothing left to stop price. It runs fast and my stop is very small.
