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Bulltrap

TSLA's bulls trapThe last bullish move was quite strong, with the price moving above a large consolidation zone from March to April. Now, we have something that looks like a bull flag—the price is crawling slowly down, finding some support near the consolidation POC. This is a very tempting opportunity to enter a LONG position with a potential upside of 15% or more. However, it is likely to fail. Here is why: 1. The price is in a monthly/weekly downtrend. For the monthly downtrend to reverse, we need a trend change at the weekly level. So far, the bulls have NOT even managed to set a higher low on the weekly chart. 2. TSLA is much weaker than the market. While the S&P has been rallying for the last two weeks, TSLA has been declining. 3. TSLA's last earnings report was bad. Although the price rallied for a short period, it doesn't mean that the sentiment has significantly changed. To sum it up, the context is very bearish. I wouldn't seriously consider any LONG positions at this stage. Disclaimer I don't give trading or investing advice, just sharing my thoughts.
NASDAQ:TSLA
by hermes_trisme
1
Potential Ascending Triangle (NQ Futures)NQ Futures could be trying to setup an ascending triangle to catch bears short at the bottom with major upside potential with a breakout and confirm. Will almost certainly coincide with data/news that will either play out a bear trap or a bull trap on the same timeframe for the next let the market takes. Often these patterns forming at the bottom of a range end up being bull traps but anything can happen and it's best to be prepared for whatever happens.
CME_MINI:NQ1!
by Eclipse_Trading
Are We Looking At A Bitcoin Bull Trap?In my last TA post, I talked about the possibility of Bitcoin heading back to the $35-36 range before the halving, and I still don't think I am wrong about that. Let's take a look at why... Bitcoin is really hitting some resistance at the current range. When I look at other cryptos like Ethereum, it's much of the same. This pattern looks to me like a bull trap. This is where we bounce out of a significant down trend and this price action tends to catch bulls by the short and curlies as they think the price is going to recover and continue to the moon, but it just doesn't work that way. These retracement pumps tend to get people caught in a FOMO mode and then turn on them and head back in the other direction. I believe this is one of those times. Very rarely does a market like Bitcoin just bounce straight up. It has it's big parabolic rises, yes, as we have seen recently, but this action cannot last forever. In the last cycle, we saw the pump from the 3K range up to nearly 15K and back to the 6.5K range before the halving, so my prediction of seeing a 35K-36K Bitcoin price before April is not out of the cards. My non-financial advice to traders is if you have been trading this reversal from the 38K range, then you might want to think about taking some profits off the table. Just saying, because that is exactly what I am doing. I am also still DCA accumulating BTC as we go along and will stop that action once we break all time highs again, then it will be off to the races and looking for good market cycle take profit signals. How are you playing this Bitcoin and crypto action?
COINBASE:BTCUSDShort
by thelogicaldude
Turning Traps into Profitable Opportunities ! TOP 3 PATTERNSTrading traps are a common occurrence in the cryptocurrency market. They can be created by a variety of factors, including market manipulation, technical analysis, and psychological biases. While traps can be dangerous for traders who are not prepared, they can also be a source of profit for those who know how to trade them effectively. In this article, we will discuss three common trading traps and how to trade them profitably. We will also discuss how traps are created and how they can be used to your advantage. What Are Trading Traps? Trading traps are false movements in the price of a cryptocurrency that are designed to trick traders into taking a position in the wrong direction. They can be created by a variety of factors, including: Market manipulation: Market manipulators may create traps to trick traders into taking positions that are in their favor. For example, they may buy a large amount of a cryptocurrency to drive up the price, and then sell it off quickly to create a sell-off. Technical analysis: Technical analysts may use traps to take advantage of traders who are following technical indicators. For example, they may create a false breakout of a support or resistance level to trigger stop-loss orders. Psychological biases: Psychological biases, such as fear of missing out (FOMO) and fear of loss (FUD), can also lead traders to fall into traps. For example, a trader who is afraid of missing out on a potential bull run may be more likely to buy into a false breakout. In the example above, LINK was trading in a horizontal range for several months. The price then broke below the lower range boundary, which was a sign of a potential bear trap. However, the price quickly reversed and re-tested the lower range boundary. This was a good opportunity to enter a long position, as it showed that the trend was still in place. How to Identify Trading Traps There are a few things you can look for to help you identify trading traps, including: Volume: A sudden increase in volume can be a sign that a trap is being set. This is because market manipulators or technical analysts will often need to buy or sell a large amount of cryptocurrency to create a false movement in the price. Price action: A false breakout or fakeout is often accompanied by a sharp reversal in price action. For example, a false breakout of a support level may be followed by a sharp sell-off. Technical indicators: Some technical indicators, such as the Bollinger Bands, can help you identify potential traps. For example, the Bollinger Bands may widen before a false breakout, which can be a sign that a trap is being set. How to Trade Trading Traps Once you have identified a trap, you can trade it in one of two ways: Long trap: If you believe that the trend will continue, you can enter a long position on the re-test of the breakout level. Short trap: If you believe that the trend will reverse, you can enter a short position on the break of the breakout level. Examples of Trading Traps 3.1 Triangular Trap Unveiled: Discuss the bearish implications of descending triangles in technical analysis and their potential use as manipulation tools. Explore how market manipulators engineer these patterns to trigger artificial stop-losses. Case Study: NEAR's Triangular Intricacies: Analyze NEAR's descent within a descending triangle and its unexpected breakout. Offer insights into the motives behind orchestrating such traps and how traders can leverage these market dynamics. Here are some examples of how trading traps can be created and traded: Shakeout trap A shakeout trap is a false breakout that is designed to trick traders into taking a position in the wrong direction. For example, a cryptocurrency may be trading in a horizontal range for several months. The price then breaks below the lower range boundary, which is a sign of a potential bear trap. However, the price quickly reverses and re-tests the lower range boundary. This is a good opportunity to enter a long position, as it shows that the trend is still in place. Fakeout trap A fakeout trap is similar to a shakeout trap, but it occurs after a trend has already begun. For example, a cryptocurrency may be in a bull market. The price then breaks above a resistance level, which is a sign that the bull market is continuing. However, the price quickly reverses and re-tests the resistance level. This is a good opportunity to enter a short position, as it shows that the bull market may be coming to an end. Reversal trap A reversal trap is when the trend of a market changes direction. For example, a cryptocurrency may be in a bull market. The price then breaks below a support level, which is a sign that the bull market is ending. However, the price quickly reverses and re-tests the support level. This is a good opportunity to enter a long position, as it shows that the bull market may be resuming. The Art of Spotting Fakeouts: Define the concept of fakeouts and unveil their potential as precursors to bullish movements. Offer insights into distinguishing genuine breakouts from manipulative traps set by market actors. Case Study: ZIL's Quick Turnaround: Uncover the Zilliqa (ZIL) chart, examining the deceptive fakeout beneath a pivotal horizontal level. Emphasize the strategic importance of waiting for a retest post-fakeout as a confirmation signal. Conclusion Trading traps can be a dangerous but profitable part of cryptocurrency trading. By understanding how traps are created and how to identify them, you can increase your chances of trading them successfully. Additional Tips for Trading Trading Traps Use stop losses: Stop losses can help you limit your losses if you are wrong about a trade. Be patient: Do not rush into a trade just because you see a trap. Wait for the
Education
by Yaroslav_Krasko
2
RNDR: Bullish Channel with Bull Traps! 📈🚀🌐 Greetings Crypto Enthusiasts, Today, let's set our sights on RNDR as it gracefully maneuvers within an ascending channel, painting a compelling narrative on the charts. RNDR, known for its strategic plays, exhibits a unique pattern—repeatedly forming a bullish flag after a bounce from the lower channel boundary. What makes RNDR an intriguing asset is its knack for executing shakeouts below the flag's pivot, creating an optimal environment for strategic investments over day trading. Let's delve into the details of RNDR's chart dynamics. 🔄💹 Charting the Course: RNDR's Ascending Channel Play Ascendancy in the Channel: Structured Trajectory: RNDR gracefully adheres to an ascending channel, illustrating a structured and methodical trajectory. Technical Rebounds: The lower boundary acts as a dynamic support, initiating technical rebounds. Bullish Flag Phenomenon: Pattern of Strength: RNDR consistently forms bullish flag patterns within its channel, symbolizing strength and resilience. Optimal Entry Points: For investors, these patterns offer optimal entry points after shakeouts below the flag's pivot. Strategic Shakeouts - A Boon for Investors: Bouncing Off Pivots: RNDR's shakeouts, specifically below the pivot of the bullish flag, act as strategic maneuvers to clear the playing field. Investor-Friendly Dynamics: This creates an investor-friendly environment, as it eliminates short-term traders with tight stops. Why Invest in RNDR: A Strategic Approach Channel Dynamics Favor Long-Term Play: Predictable Trajectory: The structured channel provides a predictable trajectory, favoring long-term investors. Minimized Day Trading Risks: RNDR's nature reduces the risks associated with day trading, making it conducive to strategic investments. Capitalizing on Shakeouts: Investor Advantage: The shakeouts become advantageous for investors, allowing them to accumulate positions at favorable prices. Avoiding Short-Term Volatility: By embracing the investment perspective, one can avoid the short-term volatility triggered by shakeouts. Conclusion: RNDR's journey within the ascending channel, coupled with its recurrent bullish flag patterns and strategic shakeouts, offers a compelling story for both traders and investors. For those seeking a less turbulent ride with minimized day trading risks, investing strategically in RNDR aligns with its unique chart dynamics. ❗️Get my 3 crypto trading indicators for FREE! Link below🔑
R
by AlexWhale
1
📈 BTC: GROW after Liquidity Trap! Bitcoin, the flagbearer of the crypto realm, is currently demonstrating a masterful dance within an ascending channel. Beyond the technicalities, there's a fascinating interplay of liquidity that savvy traders are watching keenly. Let's unravel the dynamics of BTC's ascent, the lingering liquidity, and what it implies for the next upward swing. Chart Analysis: BTC's Ascending Channel Strategy BTC has established itself within a well-defined ascending channel, a testament to the underlying bullish sentiment. However, the artistry lies not just in staying within the lines but in the strategic maneuvers within this channel. As BTC glides higher, there's a deliberate leave-behind of liquidity beneath, setting the stage for a cleaner upward trajectory. Liquidity Tactics: Setting the Stage for a Surge One intriguing aspect of BTC's current movement is the deliberate creation of liquidity pockets below the lower boundary of the channel. This isn't accidental; it's a tactical move to clear out lingering long positions. By doing so, BTC aims for a more decisive and sustainable upward movement, unburdened by overhanging positions. Trading Strategy: Anticipating the Clear Run For traders navigating the BTC landscape, recognizing the channel dynamics and understanding the liquidity strategy becomes crucial. Anticipating the potential sweep of these lower liquidity zones and a subsequent retest around the $33,000 mark can provide strategic entry points for those eyeing the next leg of the bullish journey. Conclusion: BTC's Precision Play BTC's ascent within the ascending channel is more than just a technical pattern—it's a strategic play of liquidity dynamics. The deliberate actions to clear out positions below the channel suggest a meticulous approach to ensure a cleaner and more robust upward movement. As BTC continues its precision play, traders are on the lookout for the anticipated surge beyond $33,000. 🚀 BTC Analysis | 📉 Liquidity Sweep Strategy | 💡 Ascending Channel Tactics ❗See related ideas below❗ Are you ready to ride the precision wave with BTC? Share your insights, strategies. 💚🚀💚
Long
by Yaroslav_Krasko
5
TON's Bullish Prelude📈💪There's a new player on the market, and it's making waves with its bullish demeanor. TON, the fresh-faced token, is displaying early signs of strength, trading within an ascending triangle that hints at an imminent breakout, poised to reach $5. Let's delve into what makes TON a compelling entry into the crypto scene. 📈💪 TON's Bullish Prelude: TON has entered the market with a burst of bullish energy, capturing the attention of traders and investors alike. Its current trajectory within an ascending triangle pattern signals a promising start for this new entrant. Technical Strength: Ascending Triangle Formation: The ascending triangle is a bullish continuation pattern, showcasing TON's underlying strength. This pattern suggests a potential breakout to the upside, and $5 emerges as a notable target. Early Market Dynamics: TON's early trading patterns are indicative of a positive market sentiment, attracting interest and investment. The $5 Breakout Anticipation: As TON consolidates within the ascending triangle, the stage is set for a breakout, and the $5 level stands as a key target. The breakout could signify a validation of TON's bullish potential and may spark further interest in the crypto community. Trading Strategy: Confirmation Entry: Wait for a confirmed breakout above the upper trendline of the ascending triangle before considering an entry. Volume Analysis: Monitor trading volume during the breakout to gauge the strength of the move. Increased volume can validate the breakout. Risk Management: Implement sound risk management strategies to protect your capital in case of unexpected market moves. Conclusion: TON's bullish entry into the market, coupled with the ascending triangle formation, paints an optimistic picture. As the crypto community watches for the anticipated breakout towards $5, strategic traders may find opportunities aligned with the emerging trend. May your trades be fruitful, and your journey with TON be filled with bullish strides. Happy trading, 🌐 ❗️Get my 3 crypto trading indicators for FREE! Link below🔑
by AlexWhale
3
Potential Bull Trap Brewing?CME_MINI:NQ1! broke out of a textbook bull flag price structure over the weekend and has consolidated nicely throughout the trading day Tuesday. We see two price targets of interest: 15600 - the price structure of the most recent high and the implied move of the bull flag 15063 - the approximate point of the bull flag break and currently the location of an active "rug pull" It's too early to tell whether we hit 15600 or 15063 first, but we are keeping an eye on CME_MINI:NQ1! for any sign of reversal, with 15063 as a minimum downside target. Momentum is currently with the bulls and does not show signs of slowing down quite yet. An eventual break below the AVWAP (shown in orange) could indicate a reversal is underway. PPI, CPI, and Fed minutes could bring larger volatility than usual this week. Disclaimer: Any information contained within this post does not constitute any financial, investment, or trading advice. Trade or invest at your own risk.
CME_MINI:NQ1!
by RocketTraveler
The Volume Trick: A Bullish Mirage 📈Trading cryptocurrencies often requires deciphering the subtle cues that the market offers. One such phenomenon is the apparent decrease in trading volume while prices continue to climb. While this may seem like weakness, it can, in fact, be a trap for shorts and a strong bullish signal. Let's dive into this intriguing market dynamic. Understanding the Volume Puzzle: Trading volume typically reflects market participation and strength. A decrease in volume might suggest waning interest or weakening momentum. The Deceptive Setup: Sometimes, as prices rise, trading volume shrinks, creating the illusion of market fatigue. This scenario may lead short-sellers to believe the market is losing steam. The Reality: Contrary to appearances, this setup often serves as a trap for shorts. It may signify that long-term holders are not rushing to sell, indicating strong hands. The Bullish Implication: A market that can sustain or increase prices with lower volume is demonstrating resilience. This can be a precursor to a significant bullish move. Trading Strategy: Navigating the Volume Mirage Traders should exercise caution when interpreting volume patterns. A decrease in volume amid a price rise should not be automatically seen as bearish. Risk management remains vital, as markets can be unpredictable. Conclusion: The Volume Illusion Recognizing the subtleties of trading volume can provide valuable insights into market dynamics. When volume decreases but prices continue to rise, it often confounds short-sellers and sets the stage for a bullish surge. Remember that trading is both an art and a science, and making informed decisions is key in the crypto landscape. Stay vigilant, adapt to changing conditions, and, above all, trade wisely. As we navigate the complexities of the crypto market, let's keep an eye out for these volume tricks that may just be a prelude to a bullish rally. 📊🚀🌐 ❗See related ideas below❗ Don't forget to like, share, and leave your thoughts in the comments! 💚🚀💚
BINANCE:BTCUSDLong
by Yaroslav_Krasko
Nasdaq Bull Trap StudyIntroduction I lost a lot of money when I began trading in 2018, and truth be told I have not made it all back yet. For years I blew up accounts not being able to recognize bull traps and properly set my stop losses (or take profits) and I engaged in a lot of capital destruction. As such I have spent a lot of time trying to make sure I don’t destroy more of my capital in trading another bull trap. The real question for myself is “Have I become vigilant (seeing what is there), or hyper-vigilant (seeing what is not there). Analysis This is a simple application of support and resistance. What was support flips and becomes resistance. But, because we suspect there may be a bull trap we are looking for a potential fake out. So the resistance may look like it is going to fail. In this case the star indicator is the gaussian channel. We are looking for it to act as support and then flip to resistance. But as the gaussian channel flips to resistance it might look like it will fail and the bullish trend will continue. That is what we see on our main chart. Price has popped out of a red gaussian channel and so some people may be bullish and expect continued upside. They may be doing fib extensions to the upside as part of their targeting. For this idea, the Keltner channels is along for the ride. Price pushed the Keltner channel up for the impulse and now I expect to see the top of the kelter acting as resistance on the way down. Due to the speed of the moves we can see the same thing happening in the 2017-2018 topping formation for bitcoin on Ethereum, but this time on the daily charts. Eth Example Two bull traps The main chart is on the weekly timeframe but we are looking at Eth and Bitcoin on the daily. With this set up the Gaussian channel was able to turn green again, once again selling the bull trap. The indicator was green and for the past several years that was suggesting continuation to the upside. But price broke down and the channels acted as resistance until ETH met a major target at the 1.618 extension. Bitcoin Example of Two bull traps In the case of Bitcoin with the first bull trap we set up a longer-term consolidation pattern that had people calling for saucer reversals, cup and handles, etc. Signs of green we seen as potential for more upside while more experienced traders were calling for more downside. Topping in select Equities Amazon Tesla Microsoft Lulu Meta (might actually have some more upside potential Final Thoughts & what I am doing The equities markets move relatively slow compared to crypto and if bitcoin was able to create a long consolidation structure (ascending triangle) it is not beyond reason to think that the NASDAQ or other indexes cannot either. Bear market rallies are often hard to predict and lead to lots of shorter/options traders loosing money because they did not close their shorts in the money. I am biased short in the short term. I have one long that I think will be profitable but when that has reached a target I am only shorting. I don’t want to deal with the complexities of having both longs and shorts. It can really hurt your head. My main trade is merely holding my MATIC short until it hits the monthly SAR. Somehow Bitcoin, despite all of the negativity, looks to be in the early stages of a bull market. Maybe we will see bitcoin steal some money away from the Nasdaq rather than having both plunge.
Editors' picks
TVC:NDQShort
by This_Guhy
78
US30 - 28th to New month - NFP WEEK! Good Day mates Happy new week - even though its already Wednesday. Time away from the charts is always a good thing. This week we have major US news - Previous week liquidity all taken - Liquidity Gaps created - Bullish price action - Breaking previous highs Last week the 4hr flip zone (34679) held strong. Price respected this zone very much. Price kept sweeping sellside liquidity. im expecting price to push higher until Friday, we will see corrections as noted with the gaps however i strongly believe that a seek and destroy profile is on the cards this week Good Luck ! Trade safe and follow your rules
CAPITALCOM:US30
by KingDee57
3
XAUUSD - Bullish momentum or Bull Trap?Yesterdays PMI data came in and most probably busted many accounts. I watch these live videos on socials. Counted at least 18 people with sell orders for gold yesterday... we can see bullish momentum with gold currently - Breaking previous highs - Sweeping lows - Buyside target We can also see sell side liquidity, as market is creating higher highs, sellside liq is building.. What's the move? = Sit on your hands and study price action carefully. We not done for this week yet trust that ;) Those psychological levels are in play.. Follow your rules !
FOREXCOM:XAUUSD
by KingDee57
2