Bull Trap ...
Bull Trap ...

Bull Trap ...


 

Hello to my friends who love life and always keep smiling despite all kinds of negativity. In this article, I would like to talk to you about the Bull Trap, which we often hear in the cryptocurrency markets. What is a Bull Trap…? How can we understand … ? What is the current situation… ?

If you're curious like me, let's get started…

What is Bull Trap…?

 

bull trap

 

There are profit-oriented pullbacks after a bull rally. Investors want to take profits. Afterwards, an upward movement may start again or a horizontal trend may occur depending on the market conditions. But market makers can trap investors to sell their remaining cryptocurrencies. They push prices above the next resistance level. Investors who see this want to get on the train when the downtrend is over. Since he does not confirm the trend, the market maker sells his cryptocurrencies at the appropriate time and the prices fall rapidly. It's called a Bull Trap.

 

What should we do to avoid this…

 

picture

 

As seen in the price chart, I expect 3 green candles in 4 hours. Meanwhile, I look at the situation on the daily chart. No daily confirmation. No green candle formed above the resistor. Risky situation, followed by decline. There are lots of charts about bull traps on the internet. It's good for you to have a look. For the experience…

 

Retest Check

 

retest

The most important control is to see the retest. That is, the price that exceeds the resistance level can use it as support. It works as support on the price reversal when the resistance level is broken. If it bounces back from support, the trend reversal is confirmed. It is important to follow market conditions. For example; If we talk about altcoin; Despite Bitcoin, it is difficult to move. I'm not saying it's impossible, but it's difficult...

 

My last words; It is difficult for new investors to understand the Bull Trap. The emotional side of new investors is always dominant. Investors always want to be the first to board the train. This is a wrong thought. As I mentioned above, decide after the criteria are established. 50% risky profit … ?, or 30% risk-free profit … ? These are the questions you have to ask yourself… If you want to stay in these markets, see and listen to what the price charts tell you…

As I always say, listen to everyone, decide for yourself...

Buy when everyone is selling, sell when everyone is buying...

I'm looking forward to your comments. Thanks to your comments, we can shape my next articles together. Let's stay in touch... Take care of yourself so that you and the people around you will be happy...

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Journey To The Cryptocurrency Ocean
Journey To The Cryptocurrency Ocean

"Keep your eyes on the stars, and your feet on the ground."

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