Bear Trap Trading Strategy
Trading strategies for price actions Bear trading strategy
The bear trap negotiation strategy is a price action negotiation strategy, based on a price pattern called the bear trap chart patterns.
If you don't know what a graphic pattern of bear trap is, read this post: what is a bear trap (includes 5 tips to avoid it)?
Bear trap graphics patterns are bullish patterns, which means that once you see that, you should just look to buy.
Currency pairs: Any
Term: 15 minutes and more
Forex Indicators: None Required
Anything else?:
the ability to detect or identify the main support levels
the ability to perform operations with multiple time frames
the ability to identify bullish investment candles
Bear Trap trading strategy rules
Here are the trading rules of the bear trap trading system and they are really simple if you know how to identify the different types of bear trap chart patterns.
1- Once a bear trap chart pattern is formed, wait for the bullish candle signal.
2-Once that bullish sail signal is formed, place a pending purchase order pending at least 2 pips above the maximum of that bullish candle.
3-place your stop loss at least 2 pips below the minimum of that bullish candle or, if not, place it 2 pips below the minimum of the bear in the bear trap candle.
4-For profit-taking purposes, point to a risk: minimum 1: 3 reward or, if not, use the above swing as your "profit-taking target" ... an example is shown in table a continuation.
Advantages of the Forex Bear Trap trading system
a really powerful price action trading system, especially when a bear trap pattern is formed as expected and the price tends to rise explosively
The risk: the reward of this price action currency trading system is really great.
Simple business rules, nothing complicated.
Disadvantages of the Forex Bear Trap trading system
Not all levels of support will produce bear traps.
All forex trading strategies have their limits and for this strategy of negotiating the bear trap, sometimes what you think is a bear trap might not be a bear trap and the price will continue to fall independently. So expect commercial losses to happen and that no forex system is the holy grail.
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