J9 number theory: how to avoid the trap of stepping on thunder?

bull trap ” It is the banker who uses funds 、 The technical form of manipulating charts by messages or other means , Make it show the signal of multi head arrangement , Induce investors to buy . below J9 Digital currency theory will tell you what the bull trap means ？ Identification method of multi head trap .

What does a bull trap mean ？

Nine times out of ten, bull traps are deliberately created by the main force , The purpose is to lure the technocrats to catch up by breaking through the form , Thus a large number of shipments . There are also a few bull traps formed spontaneously by the market , The reason is that there has been a sudden change in the buying and selling power in the market . But anyway , There are always some signs before and after the formation of the bull trap , To judge “ bull trap ”, We need to combine the signals of the disk with fundamental analysis and changes in macro policies .（ It is the banker who uses funds 、 The technical form of manipulating charts by messages or other means , Make it show the signal of multi head arrangement , Entice retail investors to buy .）

　

Why is there a bull trap ？

There are many reasons for the emergence of bull traps . When the market breaks through an important resistance level , Users who have been long may decide to close their positions , This leads to the increase of selling pressure in the market and the imbalance between supply and demand .

meanwhile , Short sellers may think that this breakthrough will not last , The current price is too high , The market is overbought , This led to a wave of sales orders , The upward trend will suddenly reverse .

Bearish users who break through the market upward mostly make trading decisions based on the fundamentals of the market , This is actually an effective way to avoid the bull trap .

With the increase of selling pressure 、 The market fell , Stop loss orders of long users may be triggered , Further accelerate the downward trend of the market . Eventually, the market may fall below an important support level , Form a lower low point （LL） And bearish trend reversal signals .

Liquidity is also a reason for the bull trap . Thin liquidity will lead to a sharp rise in market volatility . When liquidity dries up , Due to insufficient sellers , Even a relatively small buy order can lead to large upward fluctuations . As a result, the market broke through the resistance level upward , But as liquidity increases and sellers begin to pour into the market , Prices will soon reverse .

 

Risk warning ：

This article is for information sharing only , Do not promote or endorse any business and investment behavior , Please strictly abide by the local laws and regulations , Do not participate in any illegal financial activities .