#DAOBaseAIBinanceTGE #FOMCMeeting
📉 7 signals to detect a bullish trap before others
1. Weak volume on the breakout
• If the price breaks a resistance but the volume does not increase, it is suspicious.
• Real breakouts are usually accompanied by increasing volume.
2. Long wicks on breakout candles
• If you see a large green candle but with a long upper wick, it indicates that there was selling pressure.
• Signal that sellers are still active.
3. RSI in extreme overbought
• RSI above 70-80 indicates possible exhaustion of momentum.
• In traps, the RSI rises quickly and then falls sharply.
4. False breakout and quick pullback
• The price breaks a resistance but within minutes or one candle later, it returns to the previous range.
• This is what we call a fakeout.
5. Bearish divergences
• The price makes a new high, but the RSI, MACD, or volume makes a lower high.
• Clear signal that the movement is not solid.
6. Caught liquidity zones
• Many traders place stop-losses above resistances.
• Bullish traps rise only to hunt those stops and then fall.
7. General sentiment is too optimistic
• If everyone on social media or in groups says “now it’s going to the moon!”, be wary.
• Institutions take advantage of that FOMO to sell at a high price.
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✅ How to act?
• Do not buy right at the breakout. Wait for confirmation (2-3 candles closed outside the zone, with volume).
• Use limit orders on pullbacks, not market orders.
• Place a tight stop-loss below the broken resistance, in case it is a trap.
• Consider using 1h or 4h charts to better see the fakeouts.