If traps aren't currently a part of your strategy, please take some time out to consider whether or not they should be!
Lance Beggs
Similar Posts
Reverse Trendline Breakout Failure
The market opened and settled quickly into an uptrend. It was an environment I found difficult to trade for some reason. Decision making was poor. And I just couldn't get in sync with the price movement. This was a fact that became clearly obvious after two suboptimal trades (small profit so it's all good)….
Watch Post-Breakout Behaviour – 1
This is what I like to see in a breakout… This is a prime target for a breakout failure. But I don't ever just jump in and fade the break. There is never any certainty in this game. It may well rally. Instead, I watch post-breakout behaviour and CONFIRM that there are no…
Price Bar Reversal Patterns – Video 3 – The Bullish Rejection Pattern
Price Bar Reversal Patterns – The Bullish Rejection Pattern
Breaks Against Bias – Their Failure is My Success
We've previously discussed the idea of fading breaks which occur against the market bias. Often they're a trap! If we can anticipate that trap then we can position ourselves for a successful trade by entering at or before the point of their failure. See here if you missed the prior articles on this concept:…
You’ve GOT to Target Multiple-R Winners
Most trades will typically fall in the range from -1R to +1R… hopefully more on the positive side of that range. But for most of us this does not mean you should be targeting 1:1 trades all day, every day. By all means take them if you assess them as being a higher probability…
Traps Immediately After the Open
The open can be a time of great opportunity. But you need to be prepared. My default option is to always wait for the Trading Timeframe (TTF) to develop some structure. To wait until the initial trend is clear and obvious. But there are some times when I'll trade earlier, before the TTF settles…
This is of course a great thing to look at! I was only fading trading range breakouts scaling in my position as market moves out until a specific SL, this way I am able to get the best results with the minimum risk.
I stopped fading counter-trend moves so I could focus only on trend-side setups, but I never thought in getting into the move after the market breaks the trap bars.
I will definitely pay special attention to this!
Thank you, coach!
It’s perhaps my favourite method of entering with-trend. 🙂
hello lance ,
can we consider that we have also here bull trap after the bearish engulfing candle ? and can we go short at the high of the bearish engulfing candle
thanks in advance
mohamed
I think you answered this one already in your next comment! 🙂
Hello lance , I have another things here , each article you post I am trying to make my own analysis first and after that read your analysis in purpose to measure my skills, and at this time I noted the long trapped trader only and not recognized the short trapped trader that you mentioned although those trader is visible , is that mean that i have problem in read and analysis the chart and i have problem to trade counter trend instead of trade with the trend . also when i review my trading journal i found many mistake like this so how can i improve my performance in this point
thanks
mohamed
Yes, look at this chart. Lower left to upper right. It’s a strong uptrend. Larger green bullish candles vs smaller red bearish candles. No pullbacks showing any bearish strength at all. There is absolutely NO reason to be fading this market (accepting that we’re lacking higher timeframe context by examining just the one single chart).
The higher probability option in the event of a stronger trending move, is to ALWAYS trade in the direction of market bias.
If you feel you see shorting opportunity easily, by all means watch for it. But don’t trade it. Watch for it to fail and then consider whether or not that offers entry opportunity with-trend. Quite often failed counter-trend moves can provide a great with-trend entry.
Thanks lance