“It broke out! I bought… and then it dumped.”
Yep. You just got trapped.
Here’s how to stop that from happening again — step by step 👇
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🔍 What Is a Bull Trap?
A bull trap is a fake breakout where:
• Price breaks resistance
• Retail rushes in long
• Smart money sells into that liquidity
• Price reverses fast, trapping buyers
→ Looks bullish, but it’s a setup to take your money 😬
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⚠️ Step 1: Don’t Trust First Green Candle
Green doesn’t mean go.
Wait for:
• Candle close above resistance
• Volume confirmation
• Retest of the breakout zone
Fake breakouts usually:
• Wick above → Close below
• Spike fast → Drop faster
• Have weak volume = no conviction
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🧠 Step 2: Check Liquidity Above Highs
Before breakout, ask:
“Is there a swing high or equal highs nearby?”
If yes — there’s likely liquidity above = Stop hunt zone.
Smart money loves to:
• Trigger breakouts
• Sell into your buys
• Reverse the move
→ Don’t chase, prepare.
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🔍 Step 3: Use Confirmation Tools
Before entering:
• Use RSI — Is it overbought? Diverging?
• Use OBV or Volume — Is there real buying interest?
• Use CVD (Cumulative Volume Delta) — Are market buys real or spoofed?
Even just using basic volume + structure = better than 99% of traders
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💡 Real Bull Breakout Looks Like:
1. Clean break + candle close above resistance
2. Volume spike confirming real buyers
3. Retest of breakout zone (turns into support)
4. Bullish candle on retest = Your entry
→ SL = Below retest zone
→ TP = 2x+ your risk
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🚫 Final Checklist: Avoiding the Trap
❌ Don’t chase green
❌ Don’t trade without volume
❌ Don’t buy into wick spikes
✅ Wait for breakout + retest
✅ Confirm with price action
✅ Trade structure, not emotions
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Bull traps exist to feed smart money.
But once you spot them — you flip the trap back on them 🔄
No more emotional buys.
No more getting dumped on.
Only smart, structured trades from now on ❤️
