A question for Pro-Traders!

[Flashift]

Hey guys, 🙋‍♂️

We all know the textbook rule about CVD divergence: When aggressive market selling is hammering the bids, but the price refuses to drop, it means passive limit orders are absorbing the sell pressure. Usually, this is a bullish signal of whale accumulation.

But here is my practical challenge:
How do you mathematically or visually differentiate between genuine long-term absorption, and a temporary "Whale Trap"?

You know, when a whale puts up a fake limit wall just to induce early retail longs, only to pull the bid 5 minutes later and flush the price down to grab liquidity?

What is your specific confirmation trigger to know the absorption is real and not a spoof?

[RGBTC]

a temporary "Whale Trap"?

You mean liquidity trap? I simply pay attention to how long it takes for a large order to be placed. Usually it disappears before it is touched or the market price approaches the price at which the limit wall order was placed. Usually spoofing actions are placed at price levels that are not zones that are often retested (not a valid SnD zone).

[fighter2627]

Well, to be honest I'm not a pro-trader, I only know a little about trading but not enough to say I'm an expert, I'm very far from that level. Regarding your question op, I think that in the part and experience I do in actual trade, I just put in a position when I see a confirmation that I need to step in.

Aside from this things pull back method is one of the good things is giving me an opportunity to obtain sometimes in terms of earnings. And so far so good while I am doing this things anyway.