or break the but that closes above it.
Right after the bear trap forms, price tends to move up.
A bear trap chart pattern is a signal.
This signal forms when price hits a and pretends to break it only to reverse and head up.
So you should be looking for a bear trap chart pattern when you spot major support levels.
A Bear Trap Breaks And Closes Below A
But the Next 1 or 2 After the Breakout Are Reversal or Show Momentum.
Next time, when price comes down to a major and any of these bear trap chart patterns form, you should be watching the bear trap as well as what type of form after the formation of the bear trap .
These will give you the buy signal you need.
Bull and Bear Traps warn chartists that a signal is failing. As the catapults show, these traps are early warning system that can also fail. When looking at a Bull Trap, look at the size of the congestion zone and identify support. A pullback that holds above support could be just that, a pullback. When looking at a Bear Trap. Identify congestion zone resistance. A bounce back into this could be just an oversold bounce. Chartists should employ other aspects of to confirm signals on P&F charts.
I am not a financial advisor nor am I giving financial advice.
I am sharing my biased opinion based on speculation.
You should not take my opinion as financial advice.
You should always do your research before making any investment.
You should also understand the risks of investing. This is all speculative based investing.