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Traps

Breakout Trap (Educational Purpose)Breakout Trap in PENIND Daily Analysis of PENIND This is how investers traps in a breakout trap PENIND has made double bottom patten and as per Double Bottom Pattern analysis the projected target has been reached but the picture is not over yet!!! Some investers do re-entery in it after it breaks recent resistance level. Same thing happend in PENIND after reaching projected profit it gave breakout to it's recent resistance level and after only 5 trading sessions it fells upto 16% and here is Stop Loss comes into picture. If someone has put a strict Stop Loss in a system he /she may exit the trade as per their Risk to Reward ratio. He/She may end up with only 5%-6% loss. But what if someone has not set Stop Loss in a system he/she may have 16% of loss till the date. That's why stop loss plays very important role in Investing as well as trading. There is also small loophole, the abnormal increased in volume may indicate there may be operators comes into picture to trap the retail traders/investors. As soon as retailers enters into a trade there has sharp fall happened. It may caused by operators have exit their position. This is my view and not a theory. If you like this Educational Analysis please do boost and share. Thank You All for your support
NSE:PENIND
by Avinash9087
1
The accumulation phase of BTC is intact The range is drawn with the help of trendlines. It is highlighted with red and green color, red being the resistance range and green being the support. Relative strength is gaining but there is one catch, This indicator works on the relative price of the past few days whichever is set as per the preference. If you see the past few months BTC is in the accumulation phase or phase of consolidation. There was no spur-of-the-moment, therefore the relative strength was at the bottom and since the past few days there impulsive buying which has created a spike in the relative strength. This could be a trap. It should cross the resistance line and 200 EMA
by OK_Rane
Nifty: Back into Resistance ZoneHi We saw a strong bearish sell-off on Monday morning which soon turned into a slow and steady bullish mood. We hindered at the Gartley PRZ @ 10775-10785 (mentioned in last week's post) for two days before breakout. I updated on Friday to beware of a failure that might occur above the downtrend line and it just did that. Bears took control and the potential 10775 support could not hold. Plan for next week: Normally there has always been an aggressive sell opportunity at BO failure (in technical analysis), which should take the market back to 10620. But looking at market volatility it has become difficult to trade a directional play. So its better to wait till further confirmation which could be below our strong structure-psychological support near 10700. A break below 10700 may open the doors for 10600. In this case 10520 and 10470 can not be ruled out. On the other hand , will I buy if we continue above 10820? Yes, but I would be a passive buyer in this case with strict stops at hand. I have to be cautious because I know that any failure from this level may fetch sharp reaction. To be an aggressive buyer I need a strong push above 10820, few green candles on this time frame. At that point I will plan to buy the pullbacks. On the upside 10880-10900; 11000; 11100 and 11160 would be the levels to watch out for. Hope this analysis will help some traders in making better decisions in the coming days. Keep liking , following and sharing. Trade safe, stay healthy. Regards
NSE:NIFTYEducation
by Bravetotrade
9