Introduction
In the trading world, not everything you see on the screen is what is actually happening. Sometimes, candles are deceptive, volumes are misleading, and the market speaks a language understood only by those who have mastered reading what’s behind the scenes. One of the deadliest weapons used by whales and institutions is what is known as the price trap (Liquidity Trap) or moving against the general expectation.
So what is this trap? And why do professionals fall into it before beginners? And how do you protect yourself from it?
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What is the price trap?
The price trap is an intentional price movement executed to catch liquidity from traders who follow the overall trend or traditional technical indicators. Simply put, it is a scenario where the price is pushed in a certain direction to entice as many traders as possible to open positions, then the direction is sharply reversed against them, leading to the liquidation of their trades in favor of the big players.
A simple example:
The price breaks a strong resistance → buyers enter heavily.
Suddenly, the price drops sharply → buy positions are liquidated.
The result? Liquidity was pulled from the market, and profit shifted from individuals to whales.
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Why do these traps happen?
1. Whales need liquidity: large orders cannot be executed without counterparties, so a "bait scenario" is created to attract traders to provide that liquidity.
2. Human behavior is predictable: people easily follow breakouts and false breaks.
3. Misleading indicators: false trading volumes or artificial price movements are used to give misleading signals.
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Types of price traps:
1. False Break (Fake Breakout)
The price is pushed to break a support or resistance level to attract entry orders, then the direction is quickly reversed.
2. Instant Rush (Stop Hunt)
Areas that hide stop-loss orders are targeted to trigger them and pull liquidity.
3. Deceptive Candles (Trap Candles)
Candles with long wicks suggest a reversal or confirmation of a break, but the direction quickly changes in the next candle.
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How do you detect the price trap?
Do not trust the first breakout: wait for confirmation.
Watch the candles that reflect the intentions of institutions, such as strong reversal candles after a false breakout.
Watch the volume: traps often occur in areas of sudden high volume.
Do not enter the market at the peak of enthusiasm… be the hunter, not the prey.
Golden advice: Think like a whale, not like a herd.
The market does not reward those who follow the crowd, but rather those who understand their psychology and know how to exploit it.
The slower you are to enter and the faster you are to exit, the more you escape the traps.
Summary
The price trap is not just a coincidence, but a deliberate tactic to absorb the liquidity of small traders.
Understand the game, watch the behind-the-scenes, and remember that the market does not move randomly… but according to a plan that you often only see after you fall into the trap.
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