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When I first entered the scene, I was the market's "cash machine." Seeing Bitcoin break through a key level, I rushed in without hesitation. As soon as I got on board, the price dropped back down, trapping me tightly. The most ridiculous part was that right after I cut my losses and exited, the price reversed and went up again, making me feel like the market was deliberately mocking me.
It wasn't until later that I realized this was a false breakout— a classic tactic used by big players to harvest retail investors.
**How do the big players play their tricks?**
Simply put, it's like this: the big players intentionally push the price above a resistance level, creating the illusion of a successful breakout, luring technical traders to follow and buy in. When retail investors rush in, the big players immediately dump their holdings, causing the price to plummet. This isn't a natural market movement; it's a premeditated manipulation based on technical signals.
A friend of mine who trades intraday saw Bitcoin break through a key level with a 1.5% increase in volume and thought, "The opportunity is here," so he decisively invested $200. But before he could celebrate, a large bearish candle swallowed all the gains, and he was forced to cut losses, losing $30. He was so confused at the time: "It clearly broke above, why did it still fall?"
**How to spot these tricks? Two simple and effective methods are enough**
After many painful lessons, I summarized two straightforward and blunt approaches that helped my friend completely turn the situation around.
**Method 1: Don't be fooled by a single candlestick**
Big players especially like to use one candlestick to create a false impression.