How to Catch a Market Top? A Counter-Trend Strategy Most Traders Don't Know About
2026-05-30
How to Catch a Market Top? A Counter-Trend Strategy Most Traders Don't Know About
Imagine that today I'm going to make you break the most important rule in trading!!!
The rule is the trend is your friend
Which simply means stay with the trend — always trade in the direction of the overall market trend.

🔼 Market is bullish — all your trades should be long.

🔽 Market is bearish — all your trades should be short.
According to this rule, if the market is bullish and you enter short positions, that's considered a major mistake.
Now I'm going to teach you how to enter a short position in an uptrend so you can catch the market top and maximize your profit from the trade.

Of course, this strategy is only for taking profits. Entering short positions or trading against the trend is prohibited, and I do not use it for that purpose at all 🚫

We're about to break the most important rule in trading, so to do that, we need several conditions to appear ✏️

This strategy has specific rules that you must follow and understand well in order to benefit from it effectively.
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Focus carefully on the images in front of you and observe what the price did. I'll now explain the key conditions:
1️⃣ Liquidity Sweep of the Low

2️⃣ Liquidity Sweep of the High
But what does a "liquidity sweep" mean? 🤔
It means hitting traders’ stop losses, meaning:

🟢 Traders who are long positions and placed their stop loss below the low have been taken out of the market. 🔽
🟢 Traders who are short positions and placed their stop loss above the high have been taken out of the market. 🔼
Write the first rule with me: ✔️✏️
When you see the trend is bullish, and stop losses have been hit and conditions 1 and 2 have formed, this means the trend is highly likely to reverse. 🚨
You’re saying “likely”? 🤔 So when would it be certain?
First of all, there is nothing like “certainty” in trading.

But there is something more important: we wait for the third condition to become more confident that the trend will reverse, or at least that a strong drop will happen like we saw a few days ago 📈

To get the third condition, which helps you avoid a strong market correction with high probability:

3️⃣ Drop to a lower timeframe — and wait for a strong break of a low.
When this strong break of the low happens, it means the overall trend on the lower timeframe has shifted from bullish to bearish.

And remember what was happening on the higher timeframe??!!

There was a liquidity sweep of the high... meaning we had a high liquidity grab on the higher timeframe, and then the overall trend shifted to bearish on the lower timeframe. All of this indicates a very high probability of a strong downward move.
Okay, what is the fourth condition?
4️⃣ A flip zone is formed

If you notice here, once the BOS (Break of Structure) happens, a strong flip zone is formed.

This flip zone must be created with high volume, as you can see in the image.
So now you have
Conditions 1️⃣ and 2️⃣ are on the higher timeframe
Conditions 3️⃣ and 4️⃣ are on the lower timeframe

If these four conditions are present on any coin, stock, forex pair, or any chart in the world, there is a very high probability of a strong drop.

We previously warned about a drop when the price was at the flip zone… even before the zone was fully formed. And indeed, we exited the market when the price dropped and later retested that zone.

So here we anticipated a drop in Bitcoin… but why did such a strong crash happen across altcoins? 🥹

Come here, let me tell you 👇
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Because, as you can see in these two images 👇
At the time conditions 1 and 2 occurred on Bitcoin, the same two conditions also happened on Ethereum on higher timeframes (weekly and daily).
Pay attention to an important point: 🚫
✅ The two conditions formed on Bitcoin on the daily and 4-hour timeframes.

✅ The same two conditions formed on Ethereum on the weekly and daily timeframes. 😬

This means the drop on Bitcoin would be weaker than the drop on Ethereum.

And since Ethereum is considered the “leader” of altcoins, a major crash happened in Ethereum and the altcoins.
If you made it to the end of this article, you’re a champion and truly serious about educational content and self-improvement.

So if you take a look around the website, you’ll like my explanations… so follow for what’s coming next — it’s going to be amazing ❤️‍🔥

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Thank you for your continued support 💜
Bebo | Financial Markets Analyst
A financial markets analyst and trader with over 7 years of experience, offering a specialized educational approach through a comprehensive 3-level course designed to master SMC concepts. He has also developed his own methodology based on new practical concepts that improve entry points and build a more professional and profitable trading approach. Over 3 years, he has trained more than 600 students through free and paid educational content.
How to Catch a Market Top? A Counter-Trend Strategy Most Traders Don't Know About | WolfCharts