📌 Important terms to know in trading
Many losses do not come from bad luck…
Rather, it stems from ignorance of basic terms that expose traps before entering.
If you're scalping or looking for a quick pump, understand these three well 👇
1️⃣ Wicks – Hidden signals not revealed by price alone
Candles don't just talk with their bodies; the tails tell the real story.
🔴 Long upper tail
The price refused to rise.
Selling and distribution pressure
Often the end of a wave
❌ Do not enter after him
🟢 The lower tail (useful under certain conditions)
Lower tail + strong green body
Close near the peak
High trading volume
✅ Swallowing a sale = real support
📌 Best candle for entry:
Clear body + strong closure + no long tails
2️⃣ Market Cap – Market capitalization (real currency volume)
Market Cap = Market Value
These are:
Currency price × Number of currencies in circulation
❗ Price alone is not enough to judge
The important division:
Large Cap: Over 10B ❌ Slow
Mid Cap: 300M – 2B ✅ Excellent
Low Cap: 30M – 300M 🔥 Fast
Micro Cap: Less than 30M ⚠️ Tampering
🎯 Best for fast pumping:
Market Cap between 50M – 500M
⚠️ Important condition:
Daily Volume ≥ 10% of Market Cap
No size = fictitious movement
3️⃣ Total Supply – Total Supply (The Silent Danger)
Total Supply = Total number of currencies that exist or will exist
The difference between the terms:
Circulating Supply: Currently in circulation
Total Supply: Current + Locked
Max Supply: Final Maximum
Why is it dangerous?
if it was:
Circulating low
Total is large
⚠️ Any sudden token opening = heavy dumping
📌 The golden rule:
Circulating Supply is preferred
More than 60% of Total Supply
🧠 Summary
The tails reveal the market's intentions
Market Cap determines the speed of movement
Total Supply exposes the dumping trap
📉 Ignoring these terms = Late entry
📈 Understanding it = Smarter and calmer trading
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