ANATOMY OF A FAKE BREAKOUT ON SUI: HOW NOT TO GET CAUGHT 🌊
Most newbies lose their deposits on breakout strategies. They spot a level, see the impulse, jump into a long, and immediately get hit with a candlestick in the opposite direction. Let’s break down how liquidity 'sweeps' work.
• The market maker deliberately sketches a push towards the level to provoke the crowd into opening trades.
• Right behind this level are the stop-losses of shorters and pending orders of longers — this is perfect liquidity for the whale.
• The price makes a sharp jab (sweep), the big player closes their positions on you, and the trend reverses.
• A true breakout is always confirmed by the body of the candlestick holding above and an increase in vertical volume.
👇 Hit the chart widget below, check out the latest local highs. Do you see any false breakouts?
$SUI #SuiProtocol #Layer1 #liquidity #TechnicalAnalysis
Most newbies lose their deposits on breakout strategies. They spot a level, see the impulse, jump into a long, and immediately get hit with a candlestick in the opposite direction. Let’s break down how liquidity 'sweeps' work.
• The market maker deliberately sketches a push towards the level to provoke the crowd into opening trades.
• Right behind this level are the stop-losses of shorters and pending orders of longers — this is perfect liquidity for the whale.
• The price makes a sharp jab (sweep), the big player closes their positions on you, and the trend reverses.
• A true breakout is always confirmed by the body of the candlestick holding above and an increase in vertical volume.
👇 Hit the chart widget below, check out the latest local highs. Do you see any false breakouts?
$SUI #SuiProtocol #Layer1 #liquidity #TechnicalAnalysis