How to trade "Rejections" at resistance
Most traders see an asset hit resistance and immediately think "sell!" 😱 But what if I told you that knowing how it gets rejected can actually be your secret superpower for spotting profitable opportunities?
You know how sometimes you’re trying to bounce a ball really high, but it keeps hitting a ceiling?
🏀 That ceiling is kind of like "resistance" in trading - a price level where selling pressure usually takes over, pushing the price back down.
When the price of something like LDO hits this level and fails to break through, bouncing down instead, we call that a "rejection." We all get that it means buyers are losing steam, but here’s the tricky part: many of us just see any touch of resistance and panic-sell, missing out on crucial signals about the strength of that rejection.
Therefore, the magic isn’t just that it got rejected, but how it was rejected!
We need to look for signs of a strong rejection, not just any bounce.
If you see price hit resistance and then form clear bearish candlestick patterns like a "bearish engulfing" or a "pin bar" right there, that’s your signal.
This means sellers are decisively taking control, giving us a clearer entry for a short trade or a signal to take profits.
It’s like the market is whispering its intentions, and now you know how to listen!👂 Isn't that empowering?✨
#TradingTips #ResistanceTrading #cryptoeducation #TechnicalAnalysis - Disclaimer: Sharing knowledge and insights as part of learning and growing together. For educational purposes only, not financial advice.