That washout move just now was fierce. When $UNI dipped, a bunch of people got scared out, but then it turned around and went straight up. My long position was at 3.050, now it's at 3.215, +386.45% in the bag. This kind of market action is classic: first create panic, then pull the direction back.

The key point here is that the real strength isn't the pump itself, but the fact that after the sweep, the price didn't continue to sink; instead, it quickly recovered the losses. Many people only fear the wick, but I look at who is buying below. If they can absorb it, it means the bears are powerless.

Now the volatility range has opened up, and the profit is already considerable. I will take most of it off first, and keep a small portion with a protection stop to see if the bulls can push further. At this stage, you can't let greed get out of control, nor can you randomly cut positions because of a single oscillating candle.

If you missed this move, don't chase. The pump after a washout is the easiest to get you hooked. Wait patiently for a more comfortable entry.

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