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Trapped traders trading tactics of the professionals

We have explained Trapped traders trading tactics of the professionals in details. The price action dynamic concept gives an advantage in trading called Trapped Traders. By understanding design you can get edge in the market. The behavior of trapped traders will reflect by numerous pattern and structure on the price. By identifying and trading pattern you can capitalize on vulnerable trader who is caught on the wrong side of the market.

The retail traders get trapped in the market is false. The institution and big player will get trapped in the Market. The retail trader gets caught in the whipsaw and changes the price. They will take trade around predictable areas as support, resistance, key levels, breakouts, and chart formation. The structure is created by trapped retail traders can spot through price action. These structures will not lead to a significant move but trading provides a good edge. The behavior of trapped big player leads to sharp movements in price. We get a good risk-reward by trading the patterns. We need experience to recognize them.

Types of trapped traders

There are two types of trapped traders as trapped in losing positions means the first group consists of traders caught in a losing position. Trapped out of winning position is the second group of traders trapped out of winning positions.

1) Hikkake

Hikkake is inside bar failure trading strategy means ensnared. This strategy gives a good idea of what to expect. It will wait for a break-out of the inside bar to fail. Then enter as the break-out trader getting out of the position. The trading has trapped traders and a higher chance of success. It is useful to find the best inside bar break-out setup and wait for them to fail.

2) Two ledged pullbacks

The two-legged pullback in a trend is known price action trading pattern. This mark for the perspective of trapped traders in black. They are short at the end of the first leg upwards, hoping to join the bearish trend. It will not stop by the second bullish leg as the market resumed its fall as the traders get trapped out of a winning position. Sp wait for the second leg to end before getting in a short position. They get to benefit from the momentum created by the trapped trader trying to get back into their short positions called a strategy. The power of two-legged pullback stems from two groups of trapped traders.

3) Pin bar

The Pin Bar is a classic trap pattern. It goes to distance trap traders by poking up above a swing high/below a swing low. This is a long tail that confirms a price trap. The pin bars go beyond significant swing high and swing low. It occurs because many traders enter/exit their trade at swing highs and lows. This trader if trap will fuel our blast to profits.

4) Trend bar failure

It is simple that makes one of the most versatile price action patterns. A trend bar is a healthy directional bar and a basic form of a trend. The optimistic traders expect the market to continue the direction of the trend bar.

5) Context matters

The important takeaway here is context matters. So don’t enter the market because of an outside bar failure. We can enter the market because we saw the preceding sluggishness. We know failure creates a knee-jerk response to take advantage. The market analysis of trapped traders forces you to focus on the context.

Conclusion

The trapped traders do not describe the underlying market mechanics entirely. It will offer a simple way to improve your trading. So focus on changing your perspective, but not your strategies. So think like trapped traders but do not act like them. The idea of trapped traders is useful for price action traders.