How to Avoid Bull Trap?

[Suba]

If we see the green crypto market price is not necessarily a good sign and the red crypto price market is not necessarily a bad sign, highly volatile crypto prices often make traders speculate. Bull traps are often interpreted as false signals, which show signs of recovery or reversal after a downtrend to an uptrend for a while, but in reality the price of crypto will move down deeper. In the bull trap, crypto prices will exceed the previous support level. Many traders are trapped, buying more crypto because they think crypto prices will go up, but instead prices fall drastically. So how do you avoid the bull trap?

 

[Flow-er]

It very important to have the necessary knowledge around the technical analysis before putting monies on cryptocurrency. The technical analysis is a very wide topic that could only be understood well by constant practice using the Trading view or the MT4. You can't actually have the knowledge needed to avoid the bull trap when you do not have the knowledge around around the crypto charts. My strategy is very simple, I don't like using the indicators, I prefer using the pure price action coupled with the candlestick patterns knowledge. I think one should be able to avoid the bull trap by identifying the market trend first. You shouldn't expect a bullish run just because you have 3 green candles sitting next to each other. If the trend is pointing to a downswing, definitely, you should know that it's a bull trap. I will also want to look at it from another angle. If the trend is in the consolidation zone, you don't have to take a trade because you have many greem candlesticks. You will have to wait till the trend escape the consolidation zone before you will predict the direction of the trend. This are the two ways that I think one could avoid the bull trap.