When 'Buy Low' Isn't So Simple

The 'buy low, sell high' rule is often cited as a fundamental principle of trading, but its application can be surprisingly tricky. In practice, traders frequently misinterpret what constitutes a 'low' or 'high' price.

For example, consider the BTCUSDT market, where Bitcoin has plummeted from $80K to $65K while forming Lower Highs and Lower Lows. While it may seem attractive to buy at this lower price point, the market is still trending downward, making a purchase without confirmation potentially unwise.

A more effective approach involves identifying when buyers are taking control of the market. This can occur when price reaches an important support level, sweeps liquidity below a previous low, or breaks through a broken level.