Solving the Green Candle Panic or FOMOBitcoin / U.S. dollarBITSTAMP:BTCUSDTopChartPatternsSolving the Green Candle Panic or FOMO Watching a stock soar 10%, 20%, or 50% in a single session triggers a primal response. Your brain sees a massive green candle and screams: "Get in now or lose the opportunity of a lifetime." This is the Green Candle Panic. It is the point where logic is replaced by the fear of missing out (FOMO). The Last Guest Syndrome When you buy after a vertical move, you are likely the last person invited to the party. Professional traders who entered early are now looking for exit liquidity. Your FOMO buy provides them the perfect opportunity to sell and take profits. Markets move in waves. A vertical move is unsustainable withou corrections. Usually, a massive spike is followed by an equally sharp correction as the weak hands panic-sell at the first sign of a red candle. This is a Weekly NFLX example, but the very same happens in lower timeframes. If you enter at the peak, you aren't trading, you are gambling on the hope that someone even more desperate than you will buy higher. Stop Reacting, Start Anticipating The only way to beat FOMO is to move from reactive trading to proactive trading. You must understand chart patterns to identify where a move is likely to start before the green candle appears. 1. The Base is Your Best Friend Stocks rarely go from zero to hero without a consolidation period. Look for: Flat Bases: Side-ways price action with low volume. Cup and Handles: A rounding bottom followed by a small dip (the handle) before the breakout. Volatily Contraction (VCP): When the price swings get smaller and smaller, like a triangle. You can learn more here: The Buy Point Instead of chasing a 15% move, you should buy at the breakout price, the exact moment the price breaks above a clear resistance level on high volume. If you miss the pivot by more than 3-5%, the trade is gone. Let it go. The last Gold move was totally imposible to predict... or not¿? The Pullback Entry If a stock has already spiked, do not chase it. Wait for the mean reversion or a pullback to the previous support or resistance. If the trend is real, the stock will find support and your risk-to-reward ratio is much better. Your stop-loss can be tighter. Look at this easy and recent MSFT example: Trading the Green Candle Panic is a recipe for account destruction. Instead -> Identify the pattern (Base, Flag, Triangle, Support, Resistance, Double Top, Double Bottom, Pennant...). Set your alert at the resistance line. Buy the breakout, not the extension. If you are already staring at a vertical line, you are too late. Focus on the next chart. The market provides opportunities every day to those who have the patience to wait for a setup. 👇 WANT MORE? 🚀 Hit the rocket, read my profile and follow so we can find each other again.