🔥 NEWBIE MISTAKES: CHoCH or just a liquidity sweep? How not to get fooled on the chart
$DOT Correctly identifying a change of trend (CHoCH) is the key to profiting. However, big capital often masks its manipulations under it. Let's break it down using Polkadot
#DOT as an example.
❌ MISTAKE:
The price
$DOT drops, then breaks the last structural high. A newbie shouts: "Trend reversal!", goes long, but the price leaves a wick, returns below the level, and continues to fall.
🛡 REALITY:
This was not a CHoCH, but a regular liquidity sweep. The big player updated the high to take out the stop losses of shorters and trap early longers.
💡 HOW TO DISTINGUISH?
1. Look at the candle's close. A true CHoCH occurs ONLY when the candle closes its BODY above the level.
2. A break with a WICK (shadow) while the body is below is a 100% sweep. The trend for
$DOT remains short.
🧠 PM: Never make decisions on a "live" candle. Always wait for its close.
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Save this to avoid confusing a sweep with a reversal! Hit like and subscribe! Comment below, have you confused CHoCH with a sweep? 👇
#Crypto #DOT #Trading #choch #LiquiditySweep