Market Trapes

When You Place a Trade You Expect the Market to Move In the Direction you anticipate. If the Mark
direction Your fear takes Over.You Will Continued to hold the losing trade ,but hoping the market co
entrypoint.Market Doesn't come back and Continues to move furthure and furthure away fro

Trader trapped in a losing position is forced to take an emotional trading decision. Your Goal is to ide
Positions of such traders

Long Range Candles. There is one event in which you can be sure Retail Traders will Place Trades.Thi
makes a large move in one direction, a large range cadle.These candles always ake traders place trades.
in the Opposite Direction to wich the large range candle has formed ,then all of the traders who have
trapped in losing Position. How do you take advantage of this situation?well you know that their bigges
to their entry levelin this example, after tis big green candle lots if trader were trapped around this are
all Traders Square up Position their Trades .When all Close Position this Area Open Position . Look M

In Many cases ,Large range candles often turn into a different type of candle before they Closed .The
Bar . But when big players come in , the candle which initially looked really bullish or really bearish no
contains the traders who are now trapped in losing trades.the Longer the wick and Shadow
you anticipate. If the Market Moves in the Opposite
,but hoping the market could stillcome back to your
hure and furthure away from the Entry Point.

ecision. Your Goal is to identify and trade against the

rs

aders will Place Trades.This event is when the market

s ake traders place trades.if the market begins to move
all of the traders who have placed trades will become
you know that their biggest desire is for price to return
re trapped around this area When Price Reached Area
Area Open Position . Look MA or Candles.Behaveir .

e before they Closed .The Candle they turn into a Pin

bullish or really bearish now has large Wick the weak
nger the wick and Shadow of the Bar Better.
 SmartMoney Traps
Immagine You are Biggest Player in Market
What would you need to do to trap traders and make your profits?
1 Consider ''Where is the liquidity
2 What might determine retail traders to take certain positions
3 Seduce the average retail trader to actually enter a position.
3 step Process
1. Convince retail traders to take positions (Setting the Trap)(Range of Price Movement.
2.Instigate traders to become emotional and think irrationally (Quick Price Moves, Spike Candles)
3. Stop Hunting & Price Reversal
Trader are Induced to Enter a Trade Range Break and Set Trap ,Once the trap has been set price Reverse.
1 Tokio Trape Asian Session (Range Trading Risky.Stoploss Hunting)
Saffest Way to enter Liquidity Clear Out .
2 Fakeouts at the High/Low of theDay
Smartmoney also induce traders to take the wrong direction by using sharp and aggressive moves near the high or
low of the day.Privious low +New Low +Reverse. There is often a second move to the High/Low of the day, and Most
of the time it will fail to take it out .Typical M or Typical W Pattern .
3 Wedge /Triangle Trap
Wedge and Triangle is Common Pattern both side allows Sm to trape traders.On the lower bundary of the wedge,
the lows become slighty Higher and High become Slighty Lower,This has the effect of ensuring that none of the
trades that took short Position in thease reason cand turn a profit.There is no way of predicting which direction the
price will ultimately break.Determine Net Volume occurs

4 Market Open Trape

During Market Open Novice Trader to believe Price is Moving in One Direction But Reversal Round the Corner Price is
Movig one Direction very Strongly from Opening Bell ,The Momentum is Strong it creats a Parabolic Curve Not
Entering Early.Trend is Healthy but Momentum is Out Of Control Consecutive trend bars and samll Correction ,When
you See a Clear Failure or Exortion Counter It.

5 Accumulation and Distribution Phase

 This Phase Re Settting Daily High and Low. After While Range Bigin Wide . Find Spring The Fack Break Out . Longer
the Consolidation the More Powerful the Resulting Thrust.
6 High Spread Bars Within a Trading Range
Don't Trust large Body Candle with Little Wick taking a lot of Space within a range.Most Large Bare Inside of Trading
Range Counter It.There are no Followed Up Bar Scalp for Quick Profit. Analyse the Bar.

7 Market Liquidity Extraction

Liquidity is the No # 1 Element to Make Market Functionable and Competitive an Ample Participation of Both Buyers
and Sellars . Liquidity Clear Out will Often from against the Main Trend .The Larger the Liquidity zone Build up, the
more likely it is for that zone to be targeted by the smart money, Especially if it is a counter trend set up.Often
Liquidity clearout against the Main Trend
A Clear out of High and a Price reversal downwards (in Up trend)Smart money Knows How Retail Trader Use
Indicator and Moving Avarage and Candlestics,Chart Patterns.For Scalp the Day Trade.
Structure Symetry.
As time passes and if price cannot break areas with multiple high or lows chances are the liquidity around those price
levels will increase with time.
More time it passes , the more the liquidity will increase (If Major High/Lows Don't Break .

A Clear out is a liquidation event where the Stop losses of buyers or sellers are taken out ,and the breakout traders
are trapped.StopLoss Hunting any Price Structure But Liquidity Clear out Happen Dense Price Structure With Multiple
Bounces.
Look for a rapid reversal of price back in to the structural support or resestance.The Speed of Rotation back will
usually depend on the market or liquidity of the Market .Take 13 or 15 Min.30 Min.
Monitor the Lowest Low or Highest High Of the Structure.High or Lows Connecting the Trend Line Where the
Majority of Condensed Stop losses will Sheet.The Low of the Structure that market maker will want to clear out and
where Mejority of Stop will Likely sit.After the Liquidity Clearout under the lows or above high, the Price should start
reversing 10 Candle Rule. Price Rotate Back above Support.
Using Price alerts is a Useful way to support the searching Process
Once the Potential symmetrical structure is spotted (With variaables that fit a potential Liquidity Clear Out), You
Place an alert Below the Structural Low or Above High,Dependig on Bull or Bear Pattern.
Using price alerts is critical to minimize the screen time and to be more Patient look Like Fresh Trader.
At the Liquidity Clearout area, There should be significant Volume traded
 Focus on Volume . Volume Traded Increased Considerably once the Lowest low in the structure was taken out.
For an Entry Wait for the Clear out and then for the Price start Important Sign.Volume.Price Reclaim support or
Resistance Fast If Didn’t Reclaim Means Breakouts.
Faster the Price Reclaim Pushes the Supports Above the Clear out Better the Trade Within First 5 Candles.After the
Clear Out.
If the Structure is Not Symmetric Hard to entry.Prefer Structure Symmetric.
8 The Double Liquidity Clear- Out(15 Min.)

This is one of the Most common Trap used by smart money to fool both buyers and Sellars as Same Time.you
probably faced this yourself.
Market Breaks a Swing High, You think is a Breakout, But istead of Continuing Higher it aggressively moves lower ,
also breaking a recent Swing Low.
Basically, A Double Liquidity Clear-out.It Happens every day, on all Time frames.
It all starts with a breakout that fails to contiue beyond a Level ,resulting in a false Breakout Pattern.Because a False -
Brea is often a very Strong indication that a Momentum move might start soon.
Trading is a Game of Deceptions(Cheating) and traps,and you must learn to Play accordigly.
Amature will enter what looks like and Obvious Breakout.Then the Professionals will Push the Market Back the other
way This is the First Liquidity Clear Out .
2 nd Part of Trap So Firstly Price will Break a Swing High,But then it Quickly reverses, Deceiving all buyer who took
the bait of of breakout.Price will fall and will break a Swing low
Its Basically a trend Cotiuation set Up .It takes discipline and a bit of Gut feel to know when this pattern is likely to
Ocur,and you can never really know for sure until after the second Liuidity clear out has formed
High Probabality Trade Direction of the initial breakout.Trade on Dominant Trend

Enter the 2nd Liquidity Clearout with Dominent Trend Using the Price Action Double Top Bearish Engulfing Candles ,
Its Good Chanse the Pattern is Completed and Price is Then Going to Trend in Middle of Structure.
Candles and Large Wicks Best Friend will Help you to indentify .With this setup, pin bars and candles with Large wicks
will help you to Identify the Liquidity Clear out. Use 30 min.and 1 hr. Charts.
Pin Bar Large Wick Main Identify for Set Up
Accumulation-Manipulation-Trand Phase