😱 Fear Of Missing Out (FOMO)
📉Fear Of Missing Out (FOMO) / SHORT scenario.
Fear of missing out, or FOMO, is the feeling of anxiety or regret that can occur when someone believes that they have missed an opportunity to invest in a stock or crypto currency that is increasing or decreasing in value.
This feeling can be triggered by seeing others making money from a particular investment, or by observing the stock or crypto's value increasing or decreasing over time and thinking that one should have invested earlier.
FOMO can be dangerous to investors because it can lead to impulsive buying or selling decisions that are not based on sound investment strategies.
In the above scenario we can see the effect of FOMO in play. The price action breakdown of the trendline, indicating weak support and a flip of the trend.
This psychological effect can be observed without the use of indicators and by just looking at the price action.
A deeper look into order flow and Open Interest could further explain the trader's behavior on this particular effect that occurs.
🔴 ENTRY is based on the first major red candle after the breakdown, trying to knife-catch the price, based on no strategy and purely
emotion of missing out a potential short position with a stop loss nowhere close to a potential supply zone where the price action could re-visit
for confirmation of a downtrend.
🟢 ENTRY is based AFTER the retest of the trendline, on a potential supply zone where the price action is looking
for a retest at this level before confirmation of further decline of price action. Stop loss is given above the
last high, above the trendline.
👤 @AlgoBuddy
📅 Daily Ideas about market update, psychology & indicators
❤️ If you appreciate our work , Please like, comment and follow ❤️
Fear of missing out, or FOMO, is the feeling of anxiety or regret that can occur when someone believes that they have missed an opportunity to invest in a stock or crypto currency that is increasing or decreasing in value.
This feeling can be triggered by seeing others making money from a particular investment, or by observing the stock or crypto's value increasing or decreasing over time and thinking that one should have invested earlier.
FOMO can be dangerous to investors because it can lead to impulsive buying or selling decisions that are not based on sound investment strategies.
In the above scenario we can see the effect of FOMO in play. The price action breakdown of the trendline, indicating weak support and a flip of the trend.
This psychological effect can be observed without the use of indicators and by just looking at the price action.
A deeper look into order flow and Open Interest could further explain the trader's behavior on this particular effect that occurs.
🔴 ENTRY is based on the first major red candle after the breakdown, trying to knife-catch the price, based on no strategy and purely
emotion of missing out a potential short position with a stop loss nowhere close to a potential supply zone where the price action could re-visit
for confirmation of a downtrend.
🟢 ENTRY is based AFTER the retest of the trendline, on a potential supply zone where the price action is looking
for a retest at this level before confirmation of further decline of price action. Stop loss is given above the
last high, above the trendline.
👤 @AlgoBuddy
📅 Daily Ideas about market update, psychology & indicators
❤️ If you appreciate our work , Please like, comment and follow ❤️
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