breaks the support level and closes below it
or break the support level but that closes above it.
Right after the bear trap candlestick forms, price tends to move up.
A bear trap chart pattern is a bullish signal.
This signal forms when price hits a support level and pretends to break it only to reverse and head up.
So you should be looking for a bear trap chart pattern when you spot major support levels.
A Bearish Bear Trap Candlestick Breaks And Closes Below A Support Level
But the Next 1 or 2 Candlesticks After the Breakout Are Bullish Reversal Candlesticks or Show Bullish Momentum.
Next time, when price comes down to a major support level and any of these bear trap chart patterns form, you should be watching the bear trap candlestick as well as what type of candlesticks form after the formation of the bear trap candlesticks.
These will give you the buy signal you need.
Bull and Bear Traps warn chartists that a signal is failing. As the catapults show, these traps are early warning system that can also fail. When looking at a Bull Trap, look at the size of the congestion zone and identify support. A pullback that holds above support could be just that, a pullback. When looking at a Bear Trap. Identify congestion zone resistance. A bounce back into this resistance zone could be just an oversold bounce. Chartists should employ other aspects of technical analysis to confirm signals on P&F charts.
*DISCLAIMER*:
I am not a financial advisor nor am I giving financial advice.
I am sharing my biased opinion based on speculation.
You should not take my opinion as financial advice.
You should always do your research before making any investment.
You should also understand the risks of investing. This is all speculative based investing.
or break the support level but that closes above it.
Right after the bear trap candlestick forms, price tends to move up.
A bear trap chart pattern is a bullish signal.
This signal forms when price hits a support level and pretends to break it only to reverse and head up.
So you should be looking for a bear trap chart pattern when you spot major support levels.
A Bearish Bear Trap Candlestick Breaks And Closes Below A Support Level
But the Next 1 or 2 Candlesticks After the Breakout Are Bullish Reversal Candlesticks or Show Bullish Momentum.
Next time, when price comes down to a major support level and any of these bear trap chart patterns form, you should be watching the bear trap candlestick as well as what type of candlesticks form after the formation of the bear trap candlesticks.
These will give you the buy signal you need.
Bull and Bear Traps warn chartists that a signal is failing. As the catapults show, these traps are early warning system that can also fail. When looking at a Bull Trap, look at the size of the congestion zone and identify support. A pullback that holds above support could be just that, a pullback. When looking at a Bear Trap. Identify congestion zone resistance. A bounce back into this resistance zone could be just an oversold bounce. Chartists should employ other aspects of technical analysis to confirm signals on P&F charts.
*DISCLAIMER*:
I am not a financial advisor nor am I giving financial advice.
I am sharing my biased opinion based on speculation.
You should not take my opinion as financial advice.
You should always do your research before making any investment.
You should also understand the risks of investing. This is all speculative based investing.
