"Bear and Bull Traps
(Strategy)"
A couple of days ago, I wrote an article
where I described a phenomenon of
the vital price action known
as "double pressure," which is
extremely useful for trading
breakouts.
What are bear traps?
Bear traps refer to the
price action phenomenon
where after a price drop
(usually weak), sellers are
quickly countered by a violent
buying force. This typically
occurs at the breakout of an
important support level.
What are bull traps?
Bull traps are a
price action phenomenon
where after a price increase
(usually weak), buyers are
quickly nullified by a violent
selling force. This typically
occurs at the breakout of an
important resistance level.
