This is the chart of USOil :-
About This Chart Pattern :-
In this chart pattern as you know that the price is breakdown in lower side with big red candle than in this movements may be maximum trader take trade in lower side that means may be trader goes in sell side trade but after than that types of trade becomes in loss means. These traders have no more options excepts loss. Than how to skip this type of false entry this is our today’s topics.
How To Identify False Breakout :-
The answer is that If we need to skip the false entry that means false breakout entry than we have to follow some rules like that the our first rule is emotions and the second rule is maintain patience. This way we can easily skip our false entry and false breakout.
How To Identify Real Breakout :-
The answer is that If we need to identify our real breakout than we have to take some steps like First wait for big candle and big movements if our big candle is form than we need to see our support or resistance after than If breakout in lower side than wait for our supports when price is reached our supports than wait again for two more candle and the candle color is green this is also must than If two candle is form and the candle color is green and candle is bullish like that hammer and you can see also our second image if this type of pattern is form than we can take trade in buy side. This way we can identify real breakout and book a good profit.
Some details about this image :-
This is also the image of us oil chart. In this image we learn more concepts like that as you can see our price is breakdown in lower side and than reached our supports after than again bounce back in upper side than we take trade in buy side after than you can you our target is hit. This way you can book profit.
How to trade in trap trading :-
If we want to trade in trap trading than the process is that first to first we have to wait for form trap after than If our trap is form than wait for movements in any side don’t trade in first breakout in trap trading this is the golden rule of the trap trading. We need to wait for any big movement and than if our price is reached in our supports and resistance than again wait for some candle and some movements and than if our price in bounce back than we can trade in any side. This is the way for trade in trap trading.
Conclusion of this post :-
The conclusion is that our golden rule of trap trading and in any trading Don’t trade in first breakout and breakdown. If you focus on you trading life style if you want to become a richest man of your trading job than you need to focus in your chart and chart analysis than you must we become a richest man with the help of trading.
