Advanced trading lessons - page 9
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Of course
Of course there are lots of different types of traps.
We will look at more tomorrow.
traps continue
traps and psychology of the market pullbacks are joined at the hip!!
the market creates trend trust in market!!!
traps the trusting trader, stops them out.
then it creates trust in the market in the wrong direction. using confirmation and then attacking confirmation.
then when the trend traders are gone, the market reversal traders are trapped, the market moves with the trend.
market psychology!!
when traders do not trust the market, the market is then trustworthy!!
when traders do trust the market they get stopped out, and the market is not trust worthy.
when looking at traps, they all have the same psychology, but in different forms.
i can show you several traps, and i will! but before going into a host of traps.
in order to know what trap you are looking for you must: know that there are lots of traps.
the trick is to recognize the psychology of the trap is sufficient.
some traps are less nasty then the defined ones, but still effective.
some are more nasty and effective.
they all share the same psychology i just listed above.
????? is there any more help i can use to identify traps?????? yes!!!!!!!!!!!!!
the next thing i will show you before more traps is this: the art of the market.
have you ever herd the market is partly an art!! this is true but know one ever defines art!!
i will right now. in the next few shots, i will show traders that the market is under design, and how that design is a
massive help in defining trap psychology.
i acn not stress this enough
all trends have there own characteristics assigned to the trend!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
as the trend matures the characteristics of the trend become clear!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
i am going to show several shots of different trend with there own characteristics
.
even though
even though they are similar they are never exact! not in length, or in form!!
but in general shape. so when looking at counter trends psychology i expect the general shape to be close.
the traps i expect similar but not exact!!!
this is the art side of trading!!
oh by the way this proves the market is under direct design.
not all trends
some trends do not last long enough to create similar pull back designed.
some trends last so long that the design changes after to many formations of similar pull backs.
now when looking at counter trend traps, i great thing to do is look at previous traps in that trend, what an advantage!!!
when looking at traps, they all have the same psychology, but in different forms.
i can show you several traps, and i will! but before going into a host of traps.
in order to know what trap you are looking for you must: know that there are lots of traps.
the trick is to recognize the psychology of the trap is sufficient.
Fantastic thread and very generous of you to share this information. I love your discussion of traps and trading psychology, very insightful. It reminds of something I heard once from somewhere and it always stuck with me:
"The market doesn't really move until enough traders are trapped on the wrong side of a trade"
thanks
Aldente, thanks bud, i am glad to help.
trading methed
one is Bollinger bands, looking for increased volatility is also a trap.
one thing i always like to pay attention to is: did we go from small bar ranges to larger ones in ranging
countered? that tells me something right away.
the market does this often!!!!!!!!!
we can increase the range with either with larger trend candle, or larger counter trend candles.
#1 - looking for the stops to be hit with new sudden move with the trend is a great view.
#2 - looking for traders trapped in the wrong direction with the against the trend candle is also
a great view.
#3 - but the best view is this: after either side gets wiped out and usually its both!
the bands open up!! the market then 90% of the time finds the middle of the range
and (DECREASES THE RANGE AGAIN). this keeps the timing of the traders off balance for the real swing.
WE LOOK INSIDE THIS TRAP CLOSER IN EXPLANATION.
FIRST I WANTED TO SAY THIS TRAPS ARE MORE THEN PRICE... TRAPS ARE ALSO TIMING!!!!!!!
THE LENGTH OF TIME A COUNTER TREND MOVES IS ALSO A TRAP!!
OR THEY ARE A TOTAL SURPRISE MOVING MUCH EARLIER THEN EXPECTED!!!!!!!!!! LEAVING TRADERS SCRATCHING THERE HEADS!!
DISRUPTING THE TIMING OF A TRADE IS MORE IMPORTANT THEN THE TRAPS THEMSELVES IN MOST
CASES.
WE WILL ALSO LOOK INTO THIS.
for continuous trend with some retracement, the answer could be murray maths and signal line (base level for rebounding)
Yes thats ok xx
Any system based on the high low open close, is a sound system.
All traps are based on crossing the highs lows, opens and closes.
And the gann , murray math trend momentum compass, those experienced
in those systems have foundation to work from that is within what the market
behavior really is. So it can be very beneficial!!
Xx my friend you may find interesting how a change freq. When and why.
Towards the end of this thread.
Thanks good point well taken!!