K-line trap, false entry signal trap!

Friends, today let's talk about the "false entry" strategy in investing, which is a key "pitfall avoidance" knowledge!

In the chart, you can see that when the price forms liquidity above resistance areas or below support areas, false breakouts may occur. False entry refers to the behavior where the price ultimately retraces to the midpoint of the previous range, and it is a trap for breakout traders and backtest entry points. Once the price briefly returns to the broken range, it will trigger new stop-loss orders.

For example, in actual trading, seeing the price break through resistance levels and happily entering the market, but it turns out to be a false breakout, resulting in being stopped out. Understanding "false entry" can help us stay alert and avoid falling into these trading traps. Investing involves risks, the above content is for learning and reference only #黄金白银再创新高 $BTC