Last week I shared what is quite possibly my favourite market open play – https://yourtradingcoach.com/trading-process-and-strategy/long-is-wrong/

It can occur as either a PB or BPB setup, providing opportunity as market participants are trapped and stopped out of an early session long.

Incredibly simple in concept. But very effective.

<image: Profiting from structural market traps>

Please review the prior article if you missed the trade sequence we discussed last week.

There have been other examples shared via YTC in recent years.

Like here – https://yourtradingcoach.com/trading-process-and-strategy/higher-timeframe-trap-everyone-long-above-this-level-is-wrong/

And here – https://yourtradingcoach.com/trading-process-and-strategy/focus-on-catching-these-trades-first/

And again – https://yourtradingcoach.com/trading-process-and-strategy/find-your-a-trades/

This one entered short well before the break, but the “long is wrong” entry should also be obvious. See if you can find it. https://yourtradingcoach.com/trading-process-and-strategy/first-pullback-in-a-new-directional-trend/

For those of you who like the concept, consider making it a priority for study in your Market Structure & Price Action Journal. Whenever one occurs, study it.

And just as important – study the times it doesn’t work. How quickly can you recognise the failure? How well could you minimise the damage? And does it perhaps offer opportunity back in the original direction?

NQ traders, consider starting your Market Structure Journal entries by going back through the past month or so of data. Definitely anything which breaks lower in the first hour. Or for more examples, the whole AM session through till midday (it’s a bit hard to call it a “market open” play when it takes all morning… but the same concept still applies).

<image: Profiting from structural market traps>

<image: Profiting from structural market traps>

<image: Profiting from structural market traps>

<image: Profiting from structural market traps>

<image: Profiting from structural market traps>

For those who trade other markets and timeframes… the same applies. Go back through the past month or so of data and find a few of your own examples.

And further…

Maybe you could consider the opposite direction setup as well, when the market open makes an attempt to move lower before trapping these shorts and breaking through the high of day. Just ensure that the market makes a serious attempt to go short first. The more participants it can trap, the better.

Like here – https://yourtradingcoach.com/trading-process-and-strategy/opening-structure-trap/

And here – https://yourtradingcoach.com/trading-process-and-strategy/everyone-short-from-the-open-was-wrong-including-me/

The best trade ideas don’t need to be complex.

Happy trading,

Lance Beggs

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2 Comments

  1. This is a really nice set-up idea. On a gap up, talk about trapped trader order flow potential. I went through past sessions and really like this one. I do my MSPA journal entries everyday and find it curious I never noticed this myself. It seems so obvious now. I appreciate the reminder to always practice failure scenarios. Sometimes failures lead to immediate opportunity. When the trap becomes the trap; always fun. Thanks Lance.

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