Last week we profited from recognising and exploiting a Higher Timeframe (HTF) trap. Check it out here if you missed it – http://yourtradingcoach.com/trading-process-and-strategy/higher-timeframe-trap-everyone-long-above-this-level-is-wrong/
This week, let's look at the other side of traps.
The fact that sometimes… the trapper becomes trapped.
Repeating for effect:
- You don't always get it right.
- Sometimes you're "the other trader" that's caught in the trap.
- The key to surviving and minimising damage is in quickly recognising when price movement is NOT behaving as it should if the premise is correct.
- Recognise and adapt.