Trap or opportunity?
Let's explain in simple terms.
Deviation is a false breakout of the price beyond the formed sideways (range)
When the price breaks through the upper or lower boundary of the channel, the crowd rushes into positions, expecting the trend to start. But the big player, taking advantage of this liquidity, closes their tasks and returns the price back to the range.
How it looks on the chart:
1️⃣ Range: The price is squeezed between support and resistance.
2️⃣ Exit: False breakout of the boundary is pure manipulation.
3️⃣ Return: The price dives back into the channel, leaving 'trapped' traders and their stops overboard.
🌴 Deviation is fuel. Big capital activates stop-losses and 'shaves' those who jump in on the breakout. 🪒
Strong signal:
If the price returned to the range after deviation, it is highly likely to test the opposite boundary of the corridor.
Conclusion: Don't rush to jump into the rocket at the first impulse. Wait for confirmation or work from deviation in the opposite direction.
Follow risk management and trade with a cool head!
In the comments, the situation is as of now🤖
In all networks