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December 03, 2025, 01:07:42 PM |
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In crypto, impulses almost never look “clean.” A big candle doesn’t automatically mean strong demand or strong selling. Most of the time, the market sweeps liquidity, takes out the nearest highs or lows, and only then shows its real intention.
The important part is not the impulse candle itself — it’s what the market does after it.
If the price pulls back just a little, holds above (or below) the breakout zone, and then accelerates again, the move is usually genuine. It means traders are willing to enter at worse prices, and momentum is real.
But if the price quickly dives back deep inside the range, the “impulse” was probably just a liquidity grab — not true strength. Crypto is full of fake moves that look powerful but collapse the moment they appear.
Core idea: An impulse is not a candle. It’s the behavior of price after the candle.
This simple distinction helps avoid chasing traps in volatile markets and understand where the market is actually trying to go.
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