About this image :-
In this image you can see that a breakout is form and than some time sustain and here lot of trader will confused and due to confusion going towards buy and book losses.
In this post we talk about trap breakout and how we can handle this situation and how to plan our trade.
Welcome to this post now keep learning and careful learning.
What is trap breakout :-
When some breakout is form and after some time price move reverse of breakout that is called trap breakout in trading.
If you are able to find trap breakout than you can earn money using trap trading because in this time the trap trading or trap breakout is too much best and important way to make money with the help of trading.
Now to want to know how to find or identify trap breakout in live market and also you want to know what is trap trading than keep learning our post.
How to identify trap breakout :-
The easy and simple method of identify trap breakout is with the help of price action like that
If breakout is form using big green candle and when you see volume than our volume is average not increase so also we can say this is the example of trap with only the basis of volume we can identify this is our trap breakout.
This is the simple way to find or identify trap breakout in live market with the help of price action or candle strength.
What is trap trading :-
When any trap is form and we are able to identify trap and with the help of trap we plan our trade. This process is called trap trading.
If you are not able to find trap in trading than you have no more option except losses so I requested to you try to learn it don’t try to skip learning of trap trading.
How to make profit using trap trading :-
If you want to make profit using trap trading than first to first learn properly trap trading as well as how to trade on the basis of trap and also learn our next image and our all images is very learn full image.
When you learn our whole images than you can easily thing how to profit using trap trading, In simple way our first image is saying formation of trap breakout.
The second image is mainly show that after breakout how to work trap and what is the result of trap you can see that in our second image.
The third image you can see that how to plan our trading when we know that in this stock form a good trap than according to this trap how to trade in live market.
If you learn our all image and this upper points than you can easily make profit using trap trading. Here, the main learning is process and we wrote our whole process of trading.
This is the image of after formation of trap :-
In this image you can see that first trap breakout is form and than some time consolidate and than suddenly breakdown is form and this is the result of trap trading.
So we learn whole process of before result how to focus on right method and also how to easily identify this result. We learn in this title so keep learning.
How to justify this is trap breakout :-
If you want to justify your trap breakout than you can take help of price action and some technical with the help of price action you can easily justify your trap breakout.
Like that when you start your justification that time add your volume indicator and see volume and compare with you candle strength and if candle is big and volume is not good it means not big than you can say that may be it is trap.
But only the basis of volume you can’t say that this is the trap breakout you can all take help of candle sticks and candle strength.
In this image you can see that a big green candle is form and break our resistance and some time consolidate and than a big green candle is also form and try to break all time high and also break the all time high.
When this big green candle start breaking all time high that time breakout all time high and when our market near to closing that time candle strength become low.
And after closing market you can see that this candle strength and this candle strength also say that sell is more powerful than buyer so here a more point is form towards sell side.
What is the need of price action for trap :-
When you start your trading that time you feel without price action and candle sticks we can’t trade if you take trade according our short mind than we have not more option except loss.
So When we are doing normal trading there need price action so in this time this is a trap trading here too must need of price action.
And we also give a golden point and in this golden point is ‘ Don’t trade without any pattern ‘. If you have this point than this is good for you and try to remember always this point.
Here, the main need of price action only for identification and during trading because if you have price action than you can identify when you can sell or when you can buy.
If you learn some candle sticks and some indicator like volume, ema, etc. and support and resistance and also candle strength than you are able to trade and you can easily trade in live market.
These are some thing which is need for trap and trap trading and also if you don’t know what is price action than try to learn it.
What is our target when we doing trap trading :-
The target is our making profit using process not gambling. In this second image you can see that if you know process and follow your process than you can see than result the trap trading is giving very good result.
The trap trading is giving good result because it is a trap and mainly trader focused in trap so give good result and also if you trade in this trap than you can make money more than as compare to normal trade.
May be trap not form daily may be only 2 trade will give in a month but this 2 trade is highly profitable as well as less risk and more reward.
More trade in not good as compare to less trade because if you take more trade than may be you have to more risk about losses. So try to trade less trade with low risk and high reward.
This trap trading is very good if you want to become rich and profitable as compare to normal trader so don’t try to avoid this and if you want to learn how to trade in live market than you can learn next image.
This is the image of trap trading analysis :-
In this image the main learn this is process of trading in live market how to trade in live market and what is need of price action and which pattern is use when we are starting trade in live market.
In this image also we learn how to analysis our chart and how to find our stop loss and target and where we can enter in trader and also we learn what is the right time of enter. If you want to learn these thing than keep learning.
How to analysis chart :-
The main thing which is need for analysis is our price action and candle sticks pattern and chart pattern and also some patience.
If you want to start chart analysis chart than try to start higher time frame like 1D, 12M, and than shift 15min and 5min. This is very useful and help when you can to trade in live market.
You can also take help with indicator as well as support and resistance because these things are very important for when you trade in live market.
How to plan our trade :-
The simple method of trade planning is on the basis of price action and chart pattern like that in this image you can see that in 5min time frame a big red candle is form and this red candle is symbol falling.
In longer time frame if you see than you can easily set your mindset how we can react in any situation that means if you want to plan your trade than try to start analysis from longer time frame.
This way you can plan our trade in live market.
How to find entry point :-
If you want to find entry point than first to first see your longer time frame and start analysis there and see breakout or breakdown.
You can also take help some indicator like volume and ema and wait for red candle if you want to trade in intraday form than no need to wait for retest because in intraday no more time so don’t wait.
First to first try to start analysis from longer time frame because your mindset is clear to see and a single movement you can take trade in shorter time frame like 5min, 15min etc.. if you use longer time frame.
This single movement is your entry point towards your profit but before entry you try to clear you vision. This way to can find your entry point.
How to find stop loss point :-
Here, Stop loss point finding is too must easy because first you find entry point or entry candle and before entry candle which candle was formed mark it and its low or high is your stop loss point.
When you start placing your stop loss in system than try to 5 point more stop loss take like that your stop loss point is 10 but you try to save in system 15.
Because some time price not reached to your stop loss but your stop loss is hit and you have no more option except losses so if you want to avoid this than you can use this method. This is a live and practical method.
This way you can find stop loss point in live market and it is a very useful and profitable strategy which is help toward your carrier.
How to find target point :-
If you want to target point than here two method which is use in live market like that the first method is percentage and the second method is support or resistance.
The first method is percentage like than when you are starting live trading that time you thing I need 10% out of my capital and when 10% reached you can book your target. This is our first method.
The second method is technical like that when you start chart analysis than you marked some support and some resistance and when you want to book your target that time see which is our nearest support or resistance.
On the basis of nearest support or resistance you can book your target this is also most profitable strategy. This way you can find target point.
In trap trading we can buy or not :-
If price action is bullish than you can buy in trap trading. Because trading work on the basis of price action. So Yes, you can buy in trap trading.
In trap trading we can sell or not :-
If price action is bearish than you can sell in trap trading. Because price action may be bullish some time and also may be bearish some time so depend upon price action. So Yes, you can sell in trap trading.
Learning of this post :-
There are lots of learning in this post you learn step by step
The first learning is what is trap breakout.
The second learning is what is trap in trading.
The third learning is what is trap trading.
The fourth learning is how we can justify trap in trading.
The fifth learning is how to make money using trap trading.
These some things which is learning of this post and this is not only five things but here we write only five in this post more than 10 things which is very learnable for your trading life you can learn.
