What is bull trap?
normally after breaking all time high or even strong resistance traders and people expect huge rise and its improved rule too ,so what would they thinking about is this that here we have breakout lets
buy stock or ... and don't miss the market and suddenly the price start to fall hard and why ? cause we should say bull trap is one of the important reversal patterns too and you open your trade at the worst place
an example of bull-trap that i asked for permission to use it in our tutorial :
this analysis as i told use this pattern as reversal pattern .
how we identify bull-tarp?
its hard to identify bull traps on market and we should consider fundamental and technical data of index or stock and ask question that
is this breakout needed or make any sense ?
and one more thing that is so important and is the difference is retest of breakout if breakout happen you can wait for retest like chart below and then enter as buyer :
here on Bitcoin Red way use that breakout as bull trap
and Green way as breakout and retest and more gain
Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move
normally after breaking all time high or even strong resistance traders and people expect huge rise and its improved rule too ,so what would they thinking about is this that here we have breakout lets
buy stock or ... and don't miss the market and suddenly the price start to fall hard and why ? cause we should say bull trap is one of the important reversal patterns too and you open your trade at the worst place
an example of bull-trap that i asked for permission to use it in our tutorial :
how we identify bull-tarp?
its hard to identify bull traps on market and we should consider fundamental and technical data of index or stock and ask question that
is this breakout needed or make any sense ?
and one more thing that is so important and is the difference is retest of breakout if breakout happen you can wait for retest like chart below and then enter as buyer :
here on Bitcoin Red way use that breakout as bull trap
and Green way as breakout and retest and more gain
Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move
