Monday, December 22, 2014

Bull and Bear traps

E.g of bull trap (and very bad WoW trade). Daily dropping to extreme demand zone.. long opportunity here?

But

1. Monthly SZ in control
2. Weekly SZ in control
3. Daily DZ nested not in weekly DZ
4. Worst.. Daily DZ is part of a long weekly candle wick that gets liquidity  from the weekly DZ 

(Note : this so called "extreme DZ" is not found in weekly nested DZ but part of the top part of the weekly candle wick)

Hence. .v likely bull trap..

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2. See the CP  Supply zone tested many times. . Finally broke with a gap up but there is a bigger demon  waiting.. fresh and original  extreme daily supply and and extreme not tested WICK and area of weekly SZ supported by monthly SZ. . Hence the bull trap

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