Trapped traders are people who lose money and their orders make a profit for others. Understandably, when they are trapped, they are forced to close orders and create commands in the opposite direction. If we can predict this "trap" point, we will find a profit.

There are 2 types of Traders trapped:

1. Trapped in a losing stance

When a trader falls into a loss trap, what do they do?

They will have to hasten to close their orders or have a stop loss

2. Trapped out of victory

For example, you are buying, and the falling price causes you to stop loss, and then immediately, the price goes up and up in the direction of the increase as you expected.

Some patterns help detect trapped traders:

A. Hikkake candlestick pattern

This is an Inside Bar (IB) candlestick pattern (in-candles) but failed. It waits for the unsuccessful breakout of the IB and trades in the opposite direction. At this time, those who had traded in the direction of the breakout of the IB were trapped, forced to close orders, and push prices quickly in the opposite direction.

Check out the Hikkake description below:


Example of the chart:


B. Two trap tops

This is a 2-high pattern with the second high slightly above the 1, leaving some traders trapped in buying a breakup. Then they had to exit the order and create a command line that pushed the price down faster

See description below:


In another case, it might be a Pin Bar


Some examples:



In general, the advantage of this method is that the reverse flow of the trapped trader pushes the price away faster. This method may complement your entry.

With that said, nothing is optimal and you should consider your strengths and weaknesses, and combine with your experience to win the market.