These days on the Dax, I can see sellers traps pattern every single day. I will show you some of these patterns that you can use to literally buy from the low of the day every time (it’s better than to be the trapped seller ;-).
I will use a Dax M5 chart to show this.
Thursday August the 19th
I must say this one is my favorite, the exact same trap 2 times the same day, at the same level: a fake horizontal resistance zone retest combined with a fake down trend line retest.
Friday August the 20th
This one was a bit harder to see but still a multiple down trend line combined with a fake horizontal resistance zone.
It wasn’t an easy one because usually when a trend line trap sets up, the best timing for the entry is to wait for the final bigger move induction. Here we didn’t get a bigger down move before the trap.
Monday August the 23th
This trap caught both early buyers, and sellers, by showing a reversal after a big down move. Early buyers had a lot of time to enter and that was too slow and obvious to be the real buy move.
The came back down for a stop hunt at the low of the day to catch all the buyers stops and induce breakout sellers.
Tuesday August the 24th
On this one, we have an obvious down trend line once again, an a final bigger induction move. That is really usual for a trend line trap: 1. they touch the trend line several time and then 2. they throw a bigger move from the trend line to induce more. If you look closely, you will see this over and over again on every timeframe and instruments.
Here there was an additional trap for sellers at the bottom. Some rejection wicks hitting the previous day close like if it was the new resistance, but it was fake.
Bonus from the DOW August the 24th
another double down trend line trap to show you it happens everywhere.
I hope you will learn something from these patterns. I’m often trading these patterns because they are producing the real big money moves. Look at the moves after these traps, it is very fast and you can get a really interesting risk:reward ratio by learning to recognize these traps.
Feel free to join our Telegram group where I often post my traps analysis before it happens.