Lesson 07 · Unit 1 · General
Reading a chart honestly
A launch that looks like demand
d0d5
Liquidity pulled
The rise and the fall above are the same event seen from two sides. A chart shows the trades that happened; it says nothing about whether you could have been one of them — and that gap is where most losses live.
A candle is drawn by whatever size actually traded. On a $6,000 pool, $400 of buying draws a vertical green line: the picture of a moon, produced by the price of a round of coffees. The same line on a deep pool would take six figures. A chart's shape is only ever as meaningful as the money underneath it, and the chart never shows you that money.
Do
Read the liquidity number before you read the line
Check how many distinct wallets made that volume
Ask what a sell your size would do to this shape
Don't
Read a green candle as demand
Trust volume many times larger than the pool it flowed through
Assume the exit exists because the entry did
Where this goes next
A chart is drawn from trades, which only helps if the trades were real. Both halves of that have a lesson.