To be honest, take a calm look at the divergences. In the market, every time panic hits and drives a sell-off, it’s essentially handing chips to people who are prepared. Regarding this pullback—$SAMSUNG —based on what I see on the chart, at the four-hour level the volume hasn’t been continuously expanding; instead, during the decline there’s been a clear slowdown in selling volume and a stalled drop. This kind of structure usually means that the selling pressure is quickly exhausting, rather than that a trend reversal is underway.
Let’s review the rhythm of this move. The initial surge was too fast, and short-term profit-takers piled up. Then, using the so-called “good news having already landed” as an excuse, they washed out the floating positions—this is an old playbook. What you really need to be wary of is the pattern of heavy-volume, slow, bearish drift with bearish moving averages stacked—clearly, that’s not what’s happening now. The daily-level rising channel remains intact. On the downside, the support zone has been tested twice and both times it failed to break effectively, which suggests there’s capital propping it up—and the strength of that support has been increasingly decisive, time after time.
Someone asks, why does the rebound happen so fast? My logic is simple: the chip/position structure determines the speed. This drop has shaken out the uncommitted short-term traders. What remains are positions near the cost area, so the sell pressure is naturally lighter. Once buying interest gathers strength again, price recovery often only takes a few candlesticks. Looking at the order book, I’ve noticed that aggressive buy orders are gradually replenishing. Although the magnitude isn’t huge, the direction is clear.
Of course, I’m not telling you to blindly rush in. You should have a handle on the risk-reward ratio. If, after that, the closing price can reclaim and stand back above the key moving averages, then this pullback can be considered basically confirmed as ended. Finding opportunities amid divergence is far more comfortable than chasing highs when everyone is aligned bullish—that’s something anyone who’s traded contracts for a few years understands.
Gazing at the wide horizon of mountains and seas, and observing the market’s subtle movements.
Walking alongside Uncle Xiong, and seeing gains and losses right across the sky.
#SAMSUNG
Click below to trade 👇
Let’s review the rhythm of this move. The initial surge was too fast, and short-term profit-takers piled up. Then, using the so-called “good news having already landed” as an excuse, they washed out the floating positions—this is an old playbook. What you really need to be wary of is the pattern of heavy-volume, slow, bearish drift with bearish moving averages stacked—clearly, that’s not what’s happening now. The daily-level rising channel remains intact. On the downside, the support zone has been tested twice and both times it failed to break effectively, which suggests there’s capital propping it up—and the strength of that support has been increasingly decisive, time after time.
Someone asks, why does the rebound happen so fast? My logic is simple: the chip/position structure determines the speed. This drop has shaken out the uncommitted short-term traders. What remains are positions near the cost area, so the sell pressure is naturally lighter. Once buying interest gathers strength again, price recovery often only takes a few candlesticks. Looking at the order book, I’ve noticed that aggressive buy orders are gradually replenishing. Although the magnitude isn’t huge, the direction is clear.
Of course, I’m not telling you to blindly rush in. You should have a handle on the risk-reward ratio. If, after that, the closing price can reclaim and stand back above the key moving averages, then this pullback can be considered basically confirmed as ended. Finding opportunities amid divergence is far more comfortable than chasing highs when everyone is aligned bullish—that’s something anyone who’s traded contracts for a few years understands.
Gazing at the wide horizon of mountains and seas, and observing the market’s subtle movements.
Walking alongside Uncle Xiong, and seeing gains and losses right across the sky.
#SAMSUNG
Click below to trade 👇