Silver Buy | Bull Trap and Stop Loss Hunting
Traders, if this is helpful give a thumbs up and sub for more thanks.
This bull trap and then pullback to stop runs (stop loss hunting) setup have resulted in very good trading opportunities before:
The psychology behind these moves are basically that traders see a breakout and enter trades but then price makes a pullback/retracement to take out stops and then reverse and continue in the original breakout direction.
You can always ask yourself – where are traders in pain? This can help a lot finding good trades.
Instead of buying the breakout (buying high) these stop loss hunting entries will give you a much better entry point.
The risk reward ratio on these trades are very good.
Let me know in the comment section below if you have any questions.
Happy trading,
Johan
This bull trap and then pullback to stop runs (stop loss hunting) setup have resulted in very good trading opportunities before:
The psychology behind these moves are basically that traders see a breakout and enter trades but then price makes a pullback/retracement to take out stops and then reverse and continue in the original breakout direction.
You can always ask yourself – where are traders in pain? This can help a lot finding good trades.
Instead of buying the breakout (buying high) these stop loss hunting entries will give you a much better entry point.
The risk reward ratio on these trades are very good.
Let me know in the comment section below if you have any questions.
Happy trading,
Johan