Trap: Have you ever fallen into one? Understand what it is before the market catches you again!

Hey everyone! Today I decided to step away from price analysis and bring a concept that many people confuse or simply ignore… until losing money because of it: the famous Bull Trap.

What is a Bull Trap?

Simply put:

It's that moment on the chart where it seems like the market is going to explode upwards… the price breaks a resistance… everyone buys… and shortly after the price plummets.

The market gives that "false hope", deceives the buyers, and then drops back down hard. Result: those who entered thinking it was the start of an uptrend end up trapped at the top or get stopped out shortly after.

How to identify and avoid a Bull Trap:

Breakout of resistance without strong volume.

RSI and other indicators showing overbought conditions, but without trend confirmation.

Lack of strong candle right after the breakout.

Often occurs right after a long period of consolidation.

Recent practical example (for those who like to apply this in their daily trading):

We saw a classic case with some altcoins in recent weeks (like some microcaps that had that quick pump and then gave everything back the same day).

Those who entered on the first signal, without waiting for confirmation, ended up becoming involuntary holders.

Golden tip:

Before entering a breakout, always wait for:

Volume confirmation.

Candle closing above the resistance, preferably on larger timeframes (1h, 4h, daily).

Confluence with other indicators (RSI, MACD, etc).

And now, let's open the discussion:

Who here has fallen into a Bull Trap?

What strategies do you use to avoid this type of trap?

Is it worth trading breakouts… or is it better to always wait for the pullback?

Let us know in the comments! Let's learn from mistakes… before the market teaches us again in the worst way.