Bull & Bear Traps/Locate Traps

Question 1

What is a false breakout of previous support or resistance then price breakthrough then reverse forming a _____.

Answer 1

Bull or Bear Trap

Question 2

What type of traders are effected by the Bull & Bear Traps?

Answer 2

Breakout Traders & Tight Stop Traders

Question 3

What kind of trader uses tech analysis to find financial assets that have been confined to trading below a specific level (resistance) or above a specific level (support). Then enter trades when the price moves outside of a chart pattern or trendline.

Answer 3

Breakout Traders

Question 4

What kind of traders use protective stop orders (lock in profits and/or limit losses) that are placed very close to entry price or to support/resistance level?

Answer 4

Tight Stop Traders

Question 5

What is it called when price breaks a level of [resistance] to the upside then price reverses down?

Answer 5

Bull Trap

Question 6

What is it called when price breaks out previous level of [support] to the downside then price reverses up?

Answer 6

Bear Trap

Question 7

What does it mean when an influx of order flow is created in the direction of a previous move into a level of support or resistance?

Answer 7

Purpose of Traps

Question 8

When buy or sell orders deplete whatever orders remaining is where price will move. True or False

Answer 8

True

Question 9

Levels of support or resistance are where most order flow does not take place. True or False

Answer 9

False - Does take place

Question 10

What kind of traders has the most order flow and can move price in way that create traps?

Answer 10

Institutional traders

Question 11

What kind of trader buy when a resistance level is broken to the upside and there is an influx of buy order flow?

Answer 11

Breakout Trader/Purpose of Bull Traps

Question 12

What kind of traders place short entries right out of a level of resistance?

Answer 12

Tight Stop Trader

Question 13

What kind of trader buy when resistance level gets broken and also buy back tight stop orders after getting in early and getting stumped out?

Answer 13

Breakout Traders

Question 14

What is it when a support level is broken to the downside and there is an influx of sell order flow and what kind of traders trade this way?

Answer 14

Purpose of Bear Traps/Breakout Trader

Question 15

What kind of traders buy long (bullish hopes) and will have to sell during a bear trap which adds to an influx of sell orders?

Answer 15

Tight Stop Trader

Question 16

What kind of trader buy when a support level is broken to the downside and there is an influx of buy order flow?

Answer 16

Breakout Trader/Purpose of Bear Traps

Question 17

When finding bull and bear traps what is the bait and what are the determining factors of reversals?

Answer 17

Bait: Support/Resistant lines

Factors of reversals: Zones

Question 18

What kind of trap are we looking for when we look at levels of support then look down and left for previous levels of support that are close?

Answer 18

Locating Bear Traps

Question 19

What kind of traps are we looking for when we look at levels of resistance then look above and left for previous levels of resistance that are close?

Answer 19

Locating Bull Traps

Question 20

What is a Bull/Bear trap?

Answer 20

False Breakout