Bull & Bear Traps/Locate Traps Flashcards Preview

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Flashcards in Bull & Bear Traps/Locate Traps Deck (20)
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1

False breakout of previous support or resistance price breakthrough then reverse forming a _____.

Bull or Bear Trap

2

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

Breakout Traders & Tight Stop Traders

3

A trader that 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.

Breakout Traders

4

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

Tight Stop Traders

5

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

Bull Trap

6

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

Bear Trap

7

What does it mean to create an influx of order flow in direction of previous move into a level of support or resistance?

Purpose of Traps

8

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

True

9

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

False - Does take place

10

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

Institutional traders

11

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

Breakout Trader/Purpose of Bull Traps

12

What kind of traders place short entries out of the level of resistance?

Tight Stop Trader

13

What kind of trader buy when resistance level gets broken and also buy back tight stop orders when they got in early?

Breakout Traders

14

What is it when a support level is broken to the downside and there is an influx of sell order flow?

Purpose of Bear Traps/Breakout Trader

15

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

Tight Stop Trader

16

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

Breakout Trader/Purpose of Bear Traps

17

What is the bait and what are the determining factors of reversals during bull and bear traps?

Bait: Support/Resistant lines

Factors of reversals: Zones

18

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

Locating Bear Traps

19

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

Locating Bull Traps

20

What is a Bull/Bear trap?

False Breakout