As investors become aware of the main operating methods, their methods of creating traps are becoming more and more subtle and changeable.
Only by correctly distinguishing between the bullish trap and the bearish trap can investors correctly grasp the mainstream market.
So what is a bullish trap? What is a bearish trap? Don't worry, this article will explain them one by one.
Bull traps
The long trap, also known as the long trap, usually occurs when the index or stock price hits new highs, creating the illusion that the market will continue to rise, inducing investors to buy at a higher price, but in fact, the market trend reverses and falls, causing investors who buy at a high level to suffer losses and are trapped at a relatively high price.
Long trap operation strategy
After the MA bulls trap, the small third line will again form a bearish alignment diverging downward.
And above the bullish trap of the moving average, the moving average has a peak signal, such as the high death valley, the high moving average crossover divergence downward, or the bond divergence downward trend.
It is concluded that the moving average bullish trap is a typical bullish signal, and once the stock price appears in the early stage of the head decline or in the middle of the downward trend, the probability of the future market decline is very high.
If a neckline is drawn at the high of the moving average after the bullish trap of the moving average appears, the moving average is in a downtrend.
At the same time, in the volume column, the high point of the volume column draws a line, and the volume with the appearance of the same belongs to the downward trend, so that the downward trend volume and price match, the stock price can almost be said to fall in the future, and the probability of a sharp decline in the stock price inertia in the future is more than 80%, and investors must be cautious and out as soon as possible.
A classic case of a bullish trap
After the stock price stagflated at a relatively high level and formed a head, the moving average first appeared a death valley, and then the moving average long trap rebounded, and the stock price fell sharply in the future.
Short traps
The moving average short trap, also known as the moving average short trap, usually occurs when the index or stock price falls from the high area to a new low area with high trading volume, and creates the illusion of a downward breakout, so that the panic selling quickly rises back to the original intensive trading area, and breaks through the original pressure line upwards, so that the seller at the low point is short.
Short trap operation strategy
After the moving average bears trap, the small third line will form an upward divergence trend in a bullish arrangement again.
And below the short trap of the moving average, the moving average has shown a bottom reversal signal, such as the low silver valley, the low moving average crosses the upward divergence or the bond diverges upward.
It is concluded that the moving average short trap is a typical short signal, and once it appears in the early stage of the stock price building bottom rise or in the middle of an upward trend, the probability of the stock price inertia rising in the future is very high.
After the short trap of the moving average, the low point of the moving average shows an upward trend, the bottom line of the stock price K-line shows a bottom-up pattern, and the volume of the high point of the volume is enlarged after the high-point connection is displayed, forming a three-point resonance upward trend volume and price cooperation, increasing the probability of rising by more than 80%. In actual combat, this figure must be paid attention to, strictly set a stop loss and boldly go long, and the main force is expected to rise.
A classic case of a bearish trap
After a continuous sharp pullback in the stock price, when the relatively low level starts to attack the market, the moving average first appears the first crossover upward divergence, and then the moving average bearish trap appears, and the stock price fluctuates higher in the future.
Well, that's all for today's content sharing! Happy learning! See you next time!