☀️ Trading Insight ☀️ #1 - Range Contraction/Range Expansion
When markets move big, like we can see in this recent BTC move of 9%, it is very normal for them to do the opposite of what people think.
Everyone is screaming "It will bounce!!" or "It will go lower!"
But in reality we must stick to our trading rules. Range expansion leads to range contraction (and vice versa). Therefore, it is likely we will see sideways action like we can see in this chart.
You can see these channels that I have drawn in. It is common for price to consolidate at levels like this for some time.
Everyone is screaming "It will bounce!!" or "It will go lower!"
But in reality we must stick to our trading rules. Range expansion leads to range contraction (and vice versa). Therefore, it is likely we will see sideways action like we can see in this chart.
You can see these channels that I have drawn in. It is common for price to consolidate at levels like this for some time.
