Many traders initially believe that as long as they keep an eye on the candlesticks, they can make money. But in reality, they are often repeatedly harvested, and their accounts get smaller and smaller. Only then do they realize — the experts are not looking at the chart you see.

The key issue is that most people only look at the surface of the price and ignore the underlying market structure. Today, I want to share three pattern logics that have been repeatedly validated in practical trading. These signals can help you avoid risks in advance.

**First: The Trap of Fake Breakouts**

When the price breaks through a previous high, FOMO emotions run high, but the next candlestick often crashes the market. This is the trap most market participants fall into.

How to judge a true breakout? Two core conditions are indispensable:

First, the trading volume must increase by more than 2 times (compared to the 3-day average volume). A volume decrease during a breakout is often a false signal, and a pullback is imminent.

Second, at least two 4-hour candlesticks must stabilize above the resistance level. A single breakout is just following the trend, which essentially feeds the market makers.

For example, in early 2024, ETH attempted to break 2100. That was a typical volume-decreased breakout. A large wave of FOMO buyers rushed in, but the price plummeted 15% the same day. Those who entered got caught.

**Second: Hidden Accumulation Signals**

Often, the most dangerous setups occur during sideways consolidation. The price seems inactive, but large traders are already positioning.

Two actions to watch: First, a long lower shadow combined with decreasing volume and a quick rebound — indicating strong buying at the bottom; second, a sudden increase in volume on a bullish candlestick during sideways movement, usually signaling an upcoming move.

A more direct method in practice is to look for a "Three Shots to the Bottom" pattern on the daily chart — support tested three times without breaking. This pattern has a high probability of initiating a trend. Cross-referencing on-chain data to see if whales are quietly adding positions at the bottom makes the signal clearer.

**Third: Escape Signals at the Top**

The most frightening thing is not the big drop itself, but being unaware before it happens. Remember these two patterns:

The Hanging Man is the first warning — a long upper shadow with a close near the low, indicating the bulls are losing strength.

The Evening Star is the second signal — a pattern of a large bullish candle, a doji, and a large bearish candle, which is a classic reversal structure.

In November 2023, when BTC surged to 38,000, it formed a double top combined with an Evening Star pattern. The following week, it crashed to 35,000, and many futures longs were wiped out instantly.

**Core Understanding**

Ultimately, most traders don’t lack technical analysis skills; they lack a systematic explanation of the underlying logic. These patterns can help you avoid obvious directional risks about 8 hours in advance. But the real opportunity lies in the deeper structures you haven't yet understood. Continuous learning is more important than anything else.