A bull trap chart is a bearish signal that forms in an uptrend. The most common place for bull trap to happen is in a major resistance level/zone. It does not have to be an all time high and we are looking for a bull trap in a bullish market, not a bear market. If the setup fits your criteria, you'd be looking to sell which would be a counter trend position during a bull market. It is possible that you will catch a turn in trend but you should look at that as a gift. What happens during a bull trap: ■ Price is in an uptrend and hits the resistance level, breaks it and continue to move up. ■ Breakout traders jump in with their buy orders and price shoots up ■ Traders will sell limit short are triggered in but price continues to move up and hits their stops ■ Once the liquidity dries up at these levels, price falls back inside the resistance zone ■ Traders get positioned short, the breakout traders jump in to make back their loss, short rejoin after getting stopped out
A Bull Trap Candlestick Breaks The Resistance Level and Goes Up But Eventually Closes Below The Resistance Level Forming A Bearish Candlestick.
This is when the bull trap candlestick shoots up and then heads back down and forms a bearish candlestick or it can be a bullish candlestick with a "bearish momentum."
IanCryptoG
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i think it will go up from due to fundamentals its about to start functioning fully and the hype its going to be better then ETH whicb has a 200billion market cap i think it should be placed at atlest 50billion market cap.
This is when the bull trap candlestick shoots up and then heads back down and forms a bearish candlestick or it can be a bullish candlestick with a "bearish momentum."