Guide to Avoid Bullish Traps: How to Identify and Escape Them

Hello! Here you have a rewritten version of the article in Spanish, with a more personal and critical tone:

Wow, wow! All traders have fallen into those traps that seemed so obvious at some point... until we were caught off guard and left with nothing.

One of the most common is the famous "bull trap." Today we are going to unmask this clever market play, learn to detect it, and hopefully profit from it.

What the hell is a bull trap?

Imagine this: The price of an asset rises and rises until it reaches a resistance level. Then it takes a small pause, as if saying "Whoa, I almost overshot it!", but ultimately it breaks through. All the novice traders celebrate thinking it's the start of a new bullish rally.

Ha! Naive. A couple of candles later, the price makes a sharp turn and plummets. Those who set stop losses are left with nothing, and the others are stuck in losing positions.

It's as if the market is telling us: "You fell into my trap, sucker!"

Signs that you are being set up

1. Multiple bounces at resistance: If the price has been rising for a while but stalls several times at the same level, it smells fishy.

2. A huge bullish candle: Just before the trap, a giant bullish candle usually appears. It's like the bait they put out for us to bite.

3. A range forms: The price begins to oscillate within a narrow range near resistance. It is the calm before the storm.

Classic Bull Trap Patterns

1. The rejected double top: Two similar peaks, but the second has a long wick above. Sellers are saying "We've reached our limit!"

2. The bearish engulfing candle: A bullish candle followed by a huge bearish candle that "engulfs" it. Bad vibes.

3. The failed retest: The price breaks the resistance, tests it again... and then collapses. Goodbye and good riddance.

How to avoid falling into the trap

1. Don't get in late: If the market has been rising for ages, it's better not to jump on the bandwagon now.

2. Don't buy at resistances: Unless you want to take a risk.

3. Wait for the retest: If the price breaks a resistance, wait for it to test it again before entering.

4. Observe price action: Short candles, long wicks on top... all are signs that sellers are lurking.

How to Take Advantage of Bull Traps

1. Buy on retests: Wait for the price to retest the broken level before entering long.

2. Short when the trend changes: If the price fails to stay above the resistance, you know what to do.

In short, bullish traps can be a headache, but if you learn to identify them, they can turn into juicy opportunities. After all, the market always rewards those who know how to read it... and those who have the patience not to fall for its cheap tricks.

Did you find this guide useful? Well, you know what to do, practice and don't let the market deceive you! Remember that experience is the best teacher... even though it can sometimes hurt a little.