Behavioral Finance
The First Red Candle: Why We Often Miss the Turn
It's a familiar scenario: a market that has been rallying suddenly prints a small red candle after an extended climb. In hindsight, this candle often marks the beginning of a significant pullback. But in real-time, why do traders so frequently dismiss these early warning signs? This article explores the behavioral biases that prevent us from recognizing a market turn as it unfolds, using a recent Bitcoin example to illustrate these psychological traps.
Jun 26, 20265 min
