Post

A breakout is NOT confirmed just because price moves above resistance.



Before entering, check 3 things:

1️⃣ Spot volume should expand
2️⃣ Open interest should support the move without becoming extreme
3️⃣ Price should hold the breakout level after the first push

If price breaks resistance but volume fades and OI explodes, it can be a liquidity trap.

Trade the confirmation, not the candle.

#CryptoEducation #Trading #GateSquare
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.


Add a comment
Add a comment

Comment
ZeroPoet
3 hours ago
This logic also applies to stocks, validated across markets.
0View Original
MultiSigGuard
3 hours ago
Volume fade + OI spike = a classic trap, a painful lesson learned
0View Original
PickingUpCatsInTheContract
3 hours ago
Confirm the trade, don’t predict the trade—this needs to be engraved on the monitor.
0View Original