The market's bouncing back, but it's the weekend. This is often when we see lower trading volume, which can lead to unpredictable moves. 📉📈
Knowing how to read these signals can save you from making hasty decisions, especially after a volatile week like this one.
🔍 Why Weekends Are Different:
Lower Volume: Most institutional traders and major funds are off-hours. This means fewer large orders, making the market less "deep."
Higher Volatility (Sometimes): With less liquidity, a smaller trade can have a bigger impact on price, leading to exaggerated pumps or dumps (often called "fake-outs").
Liquidation Hunts: Smaller players or automated bots might try to trigger stop-losses in thinly traded markets.
💡 How to Spot a Potential "Weekend Fake-out":
Check Volume: If a big price move happens on unusually low volume, be cautious. It might not have strong conviction behind it.
Look for Range Holds: Strong breakouts or breakdowns usually need high volume and confirmation from larger players during weekdays. Over the weekend, look for the price to mostly stay within a defined range.
Weekly Close is Key: For long-term trends, the weekly candle close (often Sunday evening UTC) is far more important than any intra-weekend swing.
My Approach: I'm primarily observing for the weekly close above $70,000 to confirm strength. Anything before that is noise until confirmed.
What technical indicators do you watch on weekends to avoid false signals? Share your insights! 👇
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