Recognizing bull traps?

T

TraderTactics

In Intraday charting, how will I recognize a Bull trap? I can see that the stock is showing a rising trend but reversed from its downturn then again reverses its direction and continues to go down.

I've been caught in that bull trap. How does one recognize this pattern?
 
Quote from TraderTactics:
----how will I recognize a Bull trap?
----the stock is showing a rising trend but reversed from its downturn then again reverses its direction and continues to go down.
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1) It can "resemble" a head & shoulders top in the time frame you're looking at.
2) A "market" can trade from 20 to 24 to 22 to 26 to 24 to 25 then below 24 and 22 and lower. The rally to new highs at 26 backed off to "support" at 24, that had originally been resistance, didn't make a new high and eventually fell through the old support at 24 and then below 22, another prior support. That's the basic "look". :cool:
 
Quote from TraderTactics:

In Intraday charting, how will I recognize a Bull trap? I can see that the stock is showing a rising trend but reversed from its downturn then again reverses its direction and continues to go down.

I've been caught in that bull trap. How does one recognize this pattern?
More...

There are only two ways to do this. 1st way is to look into the crystal ball. 2nd way is to get yourself a holy grail system that can predict the future market movement.
 
Quote from DrEvil:

There are only two ways to do this. 1st way is to look into the crystal ball. 2nd way is to get yourself a holy grail system that can predict the future market movement.
More...
Or become the mm
 
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