"This is just my diary note about learning to read volume. I'm not a sorcerer, I'm just a market servant. Do with your own risk!"
Still stuck with the green label? Just saw MSS UP at $NOMUSDT, then excited to go Long? If you get confused, it means you forgot to check the gas. In my chart, it looks like MM is playing smooth. Let's dissect why this MSS has become a bearish entry point. 🧵👇
1. Effort that Decreases when Result is Big (Inducement) Try to pay attention to that MSS UP candle (the one with the highest tail). Result: The candle looks very bullish, breaking through the previous structure.
Effort (Volume): See the volume bar below it. The volume didn't explode like the previous green bars. It went up, but the volume wasn't supported by consistent new energy.
Logically: This is a sign that the MM only wants to pick up liquidity (SL/Short) above so they can sell (Short) at a higher price. The cool term is: Inducement.
2. The Confirmed SFP (Swing Failure Pattern)
After that MSS UP, the candle failed to close above the previous wick (no follow-through). Instead, it was followed by a solid red candle (almost Marubozu) that pierced through the EMA crowd. This confirms that the earlier spike was just SFP (Sweep). The Whale has no intention of raising the price; they intend to "dump" after pulling retail FOMO in.
3. Magnet to VWAP (Yellow Line)
Personally, I only enter if there's a reaction in a crucial area. With volume starting to dry up above the EMA, the market is likely to get sucked into the VWAP (Yellow Line) in the range of $0.0024 - $0.0025. I will wait for the price to touch VWAP; if at that point the volume explodes but the price holds, then I will buy (Long) for a target healthy correction.
Conclusion:
In a coin as wild as NOM, the indicator labels are just clues, the logic is in the Volume Panel. Never go against the tide if the Whale hasn't given a sign of running out of gas. Remember, your capital is your own thumb's responsibility. #DYOR!!
How about it, did anything get stuck in the MSS NOM earlier? Share your experiences below! 👇