What is A Bull Trap In Forex Trading? http://www.financial-spread-betting.com/course/technical-analysis.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE The Bull Trap trading setup. What is it and how can we take advantage of this opportunity? Let’s consider; you are looking for a trade and draw your support and resistance lines, you check in for a breakout to the upside, you are on higher timeframe – it breaks out, you take the trade, maybe it starts going in your direction a little bit but then all of a sudden it reverses and you get caught out. This happens so often that you can take advantage of it and trade against it. i.e. instead of trading the breakout you look specifically for the trap (instead of you getting trapped you look for others getting trapped). This is the bull trap trade and is based on traders getting trapped in a breakout and subsequently having to run thru the same door to get out of the trade (when they’re wrong). This works best on a daily timeframe or a monthly one – this means more participants and more likely to lead to a bigger move. Liquid fx pairs are perfect for this because of the liquidity. The nice thing about this setup is that there’s an obvious place for the stop (few pips above the high) and targets could be 3x, 10x.. – whatever you think is the likely scenario etc
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