How to avoid the deadly bulls and bears trap in the market

Discussion in 'General Forex Discussion' started by priyana, Jan 31, 2019.

  1. priyana

    priyana Member

    There are many things that you need to look after in order to make a profit in the forex market. If you think that you will be making tons of money simply by understanding the market basics then you are totally wrong. If you look at the professional trader then you will notice that every single one of them in the forex market had spent a huge amount of quality times in learning the art of trading. However, there are some traders in the forex market often complains that the trades goes in favor of them after hitting their potential stop loss in the market. This due to the fact of bulls and bears traps in the market. In this article, we will discuss the bulls and bears bear traps and give you unique tips how to avoid them.

    Bulls and bear traps: From the very word bulls and bears you might have an idea that what actually the bulls and bear traps means in the forex market. However, if you are still confused with these terms then there is no worry we will break things down for you. Have you ever seen that the market showing all the characteristics of the bullish trend and all of a sudden it sharply dropped wiping out all the long orders of the traders? This is what we call bull traps in the market. The forex market will break a critical resistance level in the market and put a strong bullish candle showing that the bulls are in control. But once you execute in favor of the newly formed trend in the market you will notice that the market has again dropped dramatically. The similar but opposite situation happens in the bears traps in the forex market.

    How do we avoid these traps: The very first thing that you need do while trading with MetaTrader 4 is learn all trading tools. Most of the novice traders in the financial market don’t know much about their trading platform and this often does the wrong type of technical analysis in the forex market. Once you know all the type of trading tools draw your support and resistance level as a zone, not as a single line. Then you will see that the bulls and bear traps in the market are confined within the support and resistance zone.
     

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