Purely psychologically driven, it will be clear which direction this will take next. beware of traps and wait for confirmation before trading a direction
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Potential trap examples
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its a top for now
Trade active
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looking shortside. tight stop loss in case of sharp reversall
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First target at 0.5, second at 0.45
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A zoomed in chart on the 5 minute shows the details of the breakdown. Looks very clean with short term action on the downside
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For those curious on the outcome, this ended up being a bear trap, as we fell out of the wedge, strong buying pressure came in forcing it back into the wedge, now it is looking to pop upwards. 0.80 awaits in the short term
Thanks for sharing this chart your view on what could happen next. This is not easy to do when markets are moving fast. Patience and research are never a bad strategies.
@Yomi0602, Oh these are just possible bear and bull traps. Oftentimes, on very volatile and psychologically/speculatively driven prices, there will be a "fakeout" going in the opposite direction of the final price action. They are called traps because they often "trap" traders betting in one direction when it reverses very suddenly and makes a sustained move in the opposite direction forcing liquidations or stops at the very least.
Yomi0602
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@MysteriousPersian, ahhh i see, is there an indicator used to create that or?
MysteriousPersian
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@Yomi0602, This is based purely on experience. I can showcase a few times this happened before: this is short-term chart from recent DOGE trading history.