BULL TRAP WARNING - HOW TO IDENTIFY AND AVOID

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Not every price increase is an opportunity. Some increases are just traps.

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🚨 Common signs of a bull trap:

• RSI > 75: Extremely overbought, high reversal risk.

• Volume spikes then drops quickly: Buying pressure has faded, late buyers are 'chasing'.

• MACD too high, no longer expanding: Momentum is weakening.

• Candles standing tall then sideways at the top: Large players are gradually unloading while you think it’s accumulation.

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❌ Common mistakes:

• Buying immediately after a standing green candle.

• Entering a trade just because the price is 'running'.

• Ignoring technical signals, entering based on FOMO emotions.

• No exit plan – entering and then 'praying'.

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✅ Safe ways to avoid traps:

• Don't enter when RSI exceeds 75 – wait for a correction.

• Volume must be consistently maintained and not just spike once.

• Enter when MACD starts to cut upwards – don’t enter when it has fully expanded.

• Wait for pullback confirmation & support before entering a new wave.

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🧠 Remember:

"When the price is running, it is not an opportunity – but a signal to wait for the next drop."

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