MBT1!: If all you have is a hammer, every problem becomes a nail

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MBT1!: If all you have is a hammer, every problem becomes a nailMicro Bitcoin FuturesCME:MBT1!yuzernameI was always told that you need the right tool for the job. In trading, if the only tool you use is Price Action, you’re going to treat every move the same. But under the hood, not all price moves are created equal. Look at these two charts of Micro Bitcoin Futures (MBT1!). On the left, we have the 4H, on the right the Weekly. Despite the massive difference in timeframes, the "engine" is telling the exact same story. In both cases, you can see price pushing higher. To some, this might look like a breakout or a trend continuation. However, in both cases, as price is moving up, the volume differential is absolutely collapsing. The fuel for the move was disappearing while the price was climbing. This is where the right tools matter. The Kinetic Bias indicator gave us a heads up before the drop happened. On the 4H, even as price pushed higher, the Bias Cloud never flipped. It remained bearish, telling us that the momentum wasn't actually shifting. This was a fake move. On the Weekly: We saw a clear Bearish Divergence. Price made a higher high, but the indicator made a lower high, followed by the Bias Cloud confirming the move by flipping Bearish. The mechanics of a reversal are often the same. Price can lie, but volume and kinetic energy tend to tell the truth. Don't just swing a hammer at every green candle you see. Look at the volume differential. Check the bias. Make sure the move actually has something behind it.