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Smartmoneyconcepts

Market Manipulations. Bullish Trap (Smart Money Concepts SMC) In the today's article, we will discuss how smart money manipulate the market with a bullish trap . In simple words, a bullish trap is a FALSE bullish signal created by big players. With a bullish trap, the smart money aims to: 1️⃣ Increase demand for an asset, encouraging the market participant to buy it. 2️⃣ Make sellers close their positions in a loss . When a short position is closed, it is automatically BOUGHT by the market. Take a look at a key horizontal resistance on AUDCHF. Many times in the past, the market dropped from that. For sellers, it is a perfect area to short from. Bullish violation of the underlined zone make sellers close their position in a loss and attracts buyers. Then the market suddenly starts falling heavily, revealing the presence of smart money. Both the sellers and the buyers lose their money because of the manipulation. There are 2 main reasons why the smart money manipulates the markets in a such a way: 1️⃣ - A big player is seeking to close a huge long position When a long position is closed, it is automatically SOLD to the market. In order to sell a huge position, smart money needs a counterpart who will buy their position. Triggering stop losses of sellers and creating a false demand, smart money sell their position partially to the crowd. 2️⃣ - A big player wants to open a huge short position But why the smart money can't just close their long position or open short without a manipulation? A big sell order placed by the institutional trader, closing their long position, can have an impact on the price of the asset. If the sell order is large enough, it can push the price downward as sellers outnumber buyers. Smart money are trying to balance the supply and demand on the market, hiding their presence. It is quite complicated for the newbies and even for experienced traders to recognize a bullish trap. One of the efficient ways is to apply multiple time frame analysis and price action. Remember, that most of the time bullish traps occur on key horizontal or vertical resistances. After you see a breakout, analyze lower time frames. Quite often, after a breakout, the market starts ranging . After a breakout of a key daily resistance, gold started to consolidate within a narrow range on an hourly time frame. Bearish breakout of the support of the range will indicate a strength of the sellers and a highly probable bullish trap. Remember, that you can not spot all the traps, and occasionally you will be fooled by smart money. However, with experience, you will learn to recognize common bullish traps. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
16
EURUSD - EURUSD – The Calm Before the SweepAfter months of climbing steadily within a rising wedge structure, EURUSD has finally broken beneath the bullish trend line that previously acted as dynamic support. This shift is significant, as it marks the first decisive violation of the bullish momentum that has carried price from the April lows into the July highs. The break occurred with strong bearish displacement, leaving behind an unfilled daily Fair Value Gap (FVG) just above the current price. This area now acts as a potential magnet for price before continuation lower. Trend Line Retest and FVG Confluence Price is currently hovering near 1.1570 after the trend line break. Above, we have a clean FVG on the daily chart which aligns closely with the underside of the broken trend line. A retracement into this zone would offer the ideal setup for short positioning, combining the concept of a bearish retest with inefficiency fill. From a technical perspective, this would give institutions a perfect level to engineer a lower high before continuing the move down. Sell-Side Liquidity Objective The major downside target sits below the swing low formed in early May. This area likely holds a large pool of resting sell-side liquidity, which would be an ideal draw for smart money before any potential reversal. If the market respects the bearish structure and rejects the FVG zone cleanly, the move toward this liquidity pocket becomes increasingly probable. Reversal Conditions While the short setup is currently the main focus, the area below the May low also presents a key decision point. If price sweeps that low and we begin to see bullish structure return, this could mark the beginning of a new leg up. For that to be valid, we’d need to see signs of strong buying interest, displacement, and reclaim of key short-term highs. Until then, we remain on the lookout for short opportunities into the FVG and trend line retest zone. Execution Plan and Expectations Traders should watch for signs of exhaustion or rejection once price enters the FVG zone. Bearish price action on lower timeframes like the 1H or 15M could confirm entry, particularly if the trend line holds as resistance. Stops can be placed above the swing high before the break, with targets below the major low around 1.10500. The reward-to-risk on this setup is favorable, but patience is needed to wait for the retrace to complete. Conclusion EURUSD has shifted from bullish to bearish structure after breaking the rising trend line. With an unfilled FVG above and a clean downside liquidity target, this setup offers a well-defined short opportunity. Reactions at the FVG and below the May low will dictate whether we extend lower or begin a new bullish phase. For now, all eyes are on the retrace and short continuation. Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis. ___________________________________ Thanks for your support! If you found this idea helpful or learned something new, drop a like 👍 and leave a comment, I’d love to hear your thoughts! 🚀
Short
by TehThomas
81