level attack without buildup, the recipe for a trap
When you have your eyes consistently at the same important levels (preferably horizontal ones), you'll quickly see the difference between a buildup that creates a powerful breakout vs a breakout fail / trap.
Naked run ups like this can be scary to get in front of, and it's not a straightforward entry, especially if you're executing on the H1. But this is why you should be building libraries of similar setups. If price knifes through that level and shoots straight up, its likely because of some really spectacular news catalyst. But in NORMAL market conditions, this is a great trap patter to study.
I think I recently shared a chart showing consistent buildup ahead of a level on the NQ. Several turns, wedging, etc BEFORE the level's probed. That's power, like a coiling snake. But no coiling here.
Think about the psych of the traders involved here.
IF price pokes back up above highs, that's usually where Bears will tap out and the BO will be safe. This actually momentarily happens on the 15m, but it ends up turning into a second Bull trap.
From the same perspective, once we've got that wedge, a push below the wedge spells the end of the Bulls. When it happens, there's no fail of a fail....Bulls pull out, and price crushes back into the big range.
Naked run ups like this can be scary to get in front of, and it's not a straightforward entry, especially if you're executing on the H1. But this is why you should be building libraries of similar setups. If price knifes through that level and shoots straight up, its likely because of some really spectacular news catalyst. But in NORMAL market conditions, this is a great trap patter to study.
I think I recently shared a chart showing consistent buildup ahead of a level on the NQ. Several turns, wedging, etc BEFORE the level's probed. That's power, like a coiling snake. But no coiling here.
Think about the psych of the traders involved here.
- The Bulls who bought down low are happy and probably looking for an excuse to cover. Smart longs are covering at least part of their position here (sell orders).
- Some late FOMO Bulls are looking to get in and will try and buy on a probe past highs. Big money isn't doing this.
- Bears are entering and keep pushing price back under the level (check out the 15m). With each bar, more Bears are selling.
IF price pokes back up above highs, that's usually where Bears will tap out and the BO will be safe. This actually momentarily happens on the 15m, but it ends up turning into a second Bull trap.
From the same perspective, once we've got that wedge, a push below the wedge spells the end of the Bulls. When it happens, there's no fail of a fail....Bulls pull out, and price crushes back into the big range.
כתב ויתור
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