Vertical Spike Alert: Is This Your Next Big Mistake? 🚨
This isn't just a candle; it's a warning sign. Extreme low liquidity means even tiny buys send prices soaring vertically. Shorts get squeezed, and price rockets up. It looks like a green wall because there were simply no sell orders to stop it.
The crucial takeaway: DO NOT CHASE these spikes. They are almost always retraced 70-100%. Entries after this candle are just exit liquidity for others. The best setups emerge AFTER the retrace, not during the frenzy. Expect a sharp spike, followed by liquidity normalization, a violent pullback, and then potentially a range.
