Tip 2: Drop, Drop, Then Rally Is a Bullish Trap
Tip 2: Decline in AS Time, continue in EU Time, and then rally before the AM Time is a bullish trap
Tip 2 needs to meet three conditions as follows:
1. In AS Time,the price falls slowly and no sharp rally appears;
2. In EU Time, the price continues the decline and breaks out the low point of AS Time ;
3. In the continuous drop,the main correction is single bullish candle or doji.
Usually, it is a healthy bearish market and the price will continue to decline in AM Time. If the price rallies before AM Time(often at UTC 11:00-13:00), it is likely to be a bullish trap.It is good to sell at the pullback which may be the location between AS Time’s low and EU Time’s high.
Tip 2 needs to meet three conditions as follows:
1. In AS Time,the price falls slowly and no sharp rally appears;
2. In EU Time, the price continues the decline and breaks out the low point of AS Time ;
3. In the continuous drop,the main correction is single bullish candle or doji.
Usually, it is a healthy bearish market and the price will continue to decline in AM Time. If the price rallies before AM Time(often at UTC 11:00-13:00), it is likely to be a bullish trap.It is good to sell at the pullback which may be the location between AS Time’s low and EU Time’s high.
