There was a time when I thought breakouts meant big profits.
The chart would break resistance, volume would spike, everyone would scream “TO THE MOON!”And I’d enter — full of hope, full of confidence… and then…
BOOM. Price reversed.
I got rekt. Again.
Sound familiar?
That’s because I was falling into one of the oldest tricks in the market —
The Break Trap.
What Is the Bear Trap Strategy?🐻
The Bear Trap is when price fakes a breakout just to trap breakout traders,
Only to reverse and move in the opposite direction.
This trap is set by smart money (institutions, whales) to grab liquidity.
Here’s how it works:
1. Price approaches a major resistance (or support) zone.
2. You see a clean breakout — candle closes above resistance.
3. Traders enter long (or short on breakdown).
4. Suddenly, price pulls back hard, stopping them out.
5. Market then moves in the opposite direction.
It’s not a real breakout.
It’s a trap.
💥How I Learned to Spot Break Traps
After getting trapped so many times, I decided to stop trading blind breakouts.
Instead, I began studying liquidity, volume traps, and manipulation zones.
Here’s what changed the game for me:
I stopped trading the first breakout.
I started waiting for confirmation (retest with support, volume strength, market structure).
I watched for stop hunts above resistance — a quick spike and dump.
I looked at liquidity maps to see where stops might be sitting.
Now, when I see a breakout, I ask:
“Is this real — or a trap?”
And most times, it’s a trap.
💸The $1K to $50K Mindset Shift
When I was blindly chasing breakouts, I lost almost every trade.
Once I learned the Break Trap Strategy,
I flipped my $1,000 portfolio to $50,000+ over time — by simply doing the opposite.
Let them break it.
Let them trap the crowd.
I’ll enter when the trap is obvious.
👉Example Setup
Imagine ETH breaks above $3,000 resistance with a strong candle.
Everyone enters long.
But then… it dumps back to $2,880.
Trap confirmed.
Now, I can short with a tight stop — targeting $2,700.
Follow Pandatraders for learning crypt