The Psychology of Micro-Timeframes: Why Trading Short Moves Could Cost You Big

it's getting really boring ever since I have stopped overtrading the chop and just started holding the coin I think will go up and now when the market is showing some positive intention

I'm missing the old habit of mine where I used to click long/short every hour and getting stopped out before the actual big move.

And at the moment I'm thinking we're on the verge of a big move because there's a lot of participants in the market who are actively trading 5 minutes timeframe, 1 hour and such micro time frame.

There's a whole psychology behind this micro-timeframe market structure and people behaviour which is something we'll talk about in this blog.

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The Micro TimeFrames: Market Structure and Psychology

The shorter timeframes on the trading charts are "microtimeframces" like 1hr, 30min, 15min, 5min, 3 mins and those who look into these timeframes are all "future traders" the one where we get liquidations.

Most of the time people think they can just increase the leverage, makes the timeframe low like 3mins and it'll print them money, which isn't true..

Like in this chart, $FET coin on 3 min all you see is coin trading in the same range

Getting rejected from the same level, bought from the same level.

But what's actually happening is completely different..

This price movement on 3mins chart is mostly 95% times BTC trading in similar pattern.

When it moves up, this altcoin follows... When it dumps.. it follows the same pattern because order book of that altcoin is "empty" and if you're trading it than it's you vs bots or market makers.

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More clicks, Less Attention

So when you're trading in low timeframes it's actually like doomscrolling insta reels and frying your attention span

The whole point of micro timeframes is to make you click more, you'll be so invested in shorter time frames that if a coin moves -1% down

You'll be 50% close to liquidation and if you're doing good risk management yet you'll lose money because you're paying attention to low timeframes and before the big moves happen

You'll exit the market either in loss or in the profit.

But it's scalpers Heaven...

Is it really scalping if you're losing and winning every now and then within an hour? No, the scalping makes sense when things are really bullish and as of now we haven't seen it in crypto

Except for some coins i.e: SUI was perfect for scalpers, ENA too.

Because there's a lot of people trading it, whales are in and they keep on adding position till they get enough of the reward pool once the coin moves 20% or more.

Also it's the perfect time for scalp when there's event like FOMC.. news trading is another edge in the market for short term traders.

Other than that like I said you're only trading against yourself, Bots and market makers with an empty order book.

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Wrapping Up...

In the end the fact that most people are showing interest in low timeframes tells a lot about how position and actively they're trading

And if the market moves down -5% in a day.. they'll be liquidated very quickly and once it happens we'll see real move to the upside aka bitcoins new all time highs.

I'm quite excited and eagerly waiting for that day when bitcoin will break it's ATH and it seems like we're going there before elections.. after election one correction to scare everyone who are calling "election bull rally" and than we'll see up only.

Hope so it'll all happen as I'm thinking.. though I'd love to know what do you think about it in the comments.

fin.

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_{Thanks for reading.Greetings.}

All the content and images are mine except indicated. No copyright infringement intended. 19/10/2024.

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