Category:BLTP：修订间差异

Bull Trap, failed bull breakout. Watch out for possible bull traps when:

• price is around EMA, even sometime there is a strong rally rushing to EMA in 2 or 3 bars after gap down, example of 20230124.
• 3 CCBLB that looks strong, but bars have prominent tails.
• market reverse quickly right after the stop order is filled (1 or 2 ticks above the signal bar).

Example Common bull traps[编辑 | 编辑源代码]

In below example of 20230124, yesterday had a BLTFO and a selloff in the afternoon, today morning market had a gap down, followed by a strong bull reversal attempt in 3 good CCBLB from bar 3-5, then bar 6 became a huge BRBCL by just going 1 tick above 5. Notice that bears sold aggressively not far above EMA, bar 3-5 have prominent tails (especially bar 2) and overlapping, even though they look like 3 good CCBLB. (If 3/4/5 all only have small tails, 5 will be a better chance of BTC)

if bought above 5 for BTC, the stop should be below 5 at least for half of the position, especially when seeing market quickly reverse down by going 1 above 5, that is a good sign of possible BLTP. As a general rule, traders should put the stop right below the signal bar no matter where he entered, at least for half of the position, because if things like bar 5 happens in such short amount of time, it is a good sign that market is doing the opposite of what traders want.