BTCUSD. Trap for Bulls and Bears
In the previous post about #BTC I mentioned that:
the most recent Trap was made for Bears, not for Bulls
After that publication, I got questions about the difference between the traps for Bulls and bears. Let me clarify my thought.
Trap for Bulls:
- Buyers watching for entering Longs,
- Price forms small up-move,
- indicators give buying signal
- Buyers enter longs
- Price quickly reverses down and makes bulls cry while their losses become growing.
On the cluster chart you can find Green Clusters as Positive delta indicates execution of Buy-Market-Price orders
During formation of Trap for Bulls, also triggering of Stop-Losses takes place (SLKT). They also produce green clusters as Buy-Stop orders execution also increase a positive Delta.
Example of Trap for bulls (and SLKT) you can find in point 1.
The opposite is valid for Trap for Bears
- Sellers watching for entering Shorts,
- Price forms small down-move,
- indicators give Sell signal
- Sellers jump into Short positions
- Price quickly reverses Up and makes Sellers cry while their losses become growing.
On the cluster chart, you can find Red Clusters as Negative delta indicates execution of Sell-Market-Price orders (new short positions)
During formation of Trap for Bears, also triggering of Stop-Losses of Buyers takes place (SLKB). They also produce Red clusters as Sell-Stop orders execution also increases a Negative Delta.
Example of Trap for Bears (and SLKB) you can find in points 2.
Note point 3. This is a potential SLKB under 7100. Watch for Demand-Bar on faster TF in order to join the Bullish Team in short-term perspective.
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