⚡️ Understanding Breakout Traps ⚡️
If we see a pattern form that retail likes to trade,
It is highly likely that this pattern may get manipulated.
The reason these common patterns get manipulated is
because of liquidity forming.
Banks want to make sure they can create enough liquidity
for themselves to get positioned nicely in the market.
They do this by driving the price up/down into stop loss areas.
To avoid being caught out we need to sit on our hands,
wait for the stop loss hunt to occur before we go-ahead
with our initial position bias.
It is highly likely that this pattern may get manipulated.
The reason these common patterns get manipulated is
because of liquidity forming.
Banks want to make sure they can create enough liquidity
for themselves to get positioned nicely in the market.
They do this by driving the price up/down into stop loss areas.
To avoid being caught out we need to sit on our hands,
wait for the stop loss hunt to occur before we go-ahead
with our initial position bias.
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