Take long entry on the high brakes of selling traps
Take short entry on the low brakes of buying traps
ignore traps left to red zones
Use the nearest trap
take profit/loss on a 1:2 risk-to-reward basis.
Trap Trading Trap trading is a trading strategy that seeks to profit from false breakouts in financial markets. This strategy is based on the idea that when the market breaks through a key level of support or resistance, many traders will take that as a signal to enter or exit trades, causing the price to move further in the breakout direction.
However, in some cases, the market will quickly reverse course and move in the opposite direction, trapping those traders who entered the trade based on the breakout. This can create a trading opportunity for those who are able to identify the false breakout and trade in the opposite direction.
The trap trading strategy typically involves identifying a key level of support or resistance on a price chart and then waiting for the market to break through that level. If the price continues to move in the breakout direction, the trader may enter a trade in that direction with a stop loss set just below the breakout level.
However, if the market quickly reverses and moves back below the breakout level, the trader may enter a trade in the opposite direction with a stop loss set just above the breakout level. The idea is to take advantage of the trapped traders who entered the trade based on the false breakout, and profit from the market's reversal.
As with any trading strategy, there are risks and potential drawbacks to trap trading. False breakouts can be difficult to identify, and there is always the risk that the market will continue to move in the breakout direction, resulting in losses for the trader. Additionally, trap trading requires a solid understanding of technical analysis and market trends, which may take time and experience to develop.
릴리즈 노트
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* New features [I] - For additional confirmation try to avoid buying traps that are above or touching the red line - For additional confirmation try to avoid selling traps that are below or touching the green line
릴리즈 노트
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The script also looks for intraday support and resistance levels and draws boxes around them.
The script takes into account support and resistance levels, and also has options to avoid traps at these levels and to highlight previous day's support and resistance levels.
When using this indicator, it's important to note that it's not a reversal indicator. Therefore, it's necessary to analyze the market trend using the previous day's support and resistance levels or by identifying HL (higher lows) creation or LH (lower highs) creation that indicates whether the market is building strength or showing weakness. This will help you make an informed decision about whether you want to take a long or short entry.
Once you have made your decision, it's recommended that you wait for a trap to take an entry. Traps can help you identify the right time to enter the market and avoid any potential losses.
It's also important to avoid buyer/seller traps in intraday support and resistance lines to avoid buying/selling trends, respectively. This will help you avoid getting caught in the wrong direction of the trend.
Lastly, it's advisable to avoid traps at red zones when the intraday range has not been confirmed. This will help you avoid taking any unnecessary risks and ensure that you're making informed decisions based on market trends and indicators
this is a super smart indicators come across in this community, i believe it should be one of the editor picked one !!!! well done and thanks for your effort !!!
swagato25
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@lukricky, Thank You. A new version will be coming soon.
balkalyan2022
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This is good one ..Is it a way u can make it for weekly to know the trend/trap area
manishverma83
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Hello, bro care to explain a bit more about this indicator. Really liked this a lot, want to understand more of it.
manishverma83
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Hello, can you pl explain one or two real trade examples to better understand the motive of traps
lukricky
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i find it is very special that if i inversely changing the signals from buy to sell, and sell to buy , (i.e. seller trap do the sell, buyer trap do the buy ) it still has very impressive result, p.s. i use the heng seng index to trade and backtesting
manishverma83
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@lukricky, hey there, bro can you explain practical use of this indicator?
swagato25
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This Indicator is not like others, it is a completely zero-lagging indicator. who doesn't know the game of price action they can use it.
itzarnab70
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@swagato25, can you share how to use this indicator with some examples so it will easy to understand.. what I find is that if the price close above the red line it's good for a sell entry with a closing candle high as SL..
swagato25
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@itzarnab70, Thank you for your comment. I have already mentioned all the steps in the description and releases section. In the next release, I will explain more with images to make it easier to understand.