The price may continue rising, while buyers’ control may already be starting to weaken.
Learn Trading with Derar-Hadri | Common mistake: How do you know buyers are starting to lose control?
A trader makes the mistake when they think every new rise means the buyers’ strength will continue.
But the price may record a higher high, while clear signs of weakness appear, such as:
▪️ Shrinking sizes of rising candles.
▪️ Long upper shadows appear.
▪️ Volume decreases during the rise.
▪️ Price fails to move away from resistance.
▪️ Breaking the last rising trough after an upswing.
These signs mean demand is no longer as strong, and sellers have started to resist the move.
Why is this mistake dangerous?
Ignoring buyers’ weakness may lead the trader to enter late near the end of the wave, or to hold a position without reassessing risk. This affects the quality of the decision, capital, and psychological state.
📊 Educational example only:
A coin like BTC rises with several strong candles, then the rising candles become smaller and volume starts to decline. Repeated upper shadows appear near resistance, and then the price fails to make clear progress.
The price is still high, but buyers are no longer controlling with the previous strength.
How do you avoid this mistake?
▪️ Compare the strength of each rising wave with the previous one.
▪️ Watch volume when new peaks are formed.
▪️ Pay attention to upper shadows near resistance.
▪️ Follow the peaks and troughs—don’t watch the candle color only.
▪️ Reassess risk when multiple weakness signals appear at the same time.
The golden rule:
A price increase does not always mean the buyers’ strength will continue.
What is the first sign you should watch to know buyers are starting to lose control?
This content is for educational purposes only and not financial advice.
