Stocks, FX, cryptocurrencies Traps that occur at repulsion points

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From big buys to sells, and from big sells to buy repulsive points. If you can do this, it will be almost a total plus and you will be able to live as a full-time trader. However, there are various traps at the reversal point and the place where you are rubbing, and there are many cases where you are caught and entered here, and you end up losing money. This article describes the characteristics of price movements that occur during major trend changes. Please also refer to the following article.

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Features of the trap

The turning point after a big trend of 100 pips or more is the most delicious point that you can get a big price range if you catch it. However, at that turning point, we can see the characteristics of a certain deception.

Below is the 1-hour AUD / JPY for January 2022. There are big buys and vigorous buys, but in the blue frame part, buying tiredness occurs, and buying and selling are rubbing for hours. This is a repulsive point, and many people put in sell entries, but let’s pay attention to the price movement after that. Although it is rubbing, you can see that it has risen once. With this move, we will give up the anti-release, but after that, we can see that full-scale sales have started.

AUD/JPY 1 Hour Term Leg 01-2022

When a big trend turns around, this kind of swinging behavior often happens, giving up on anti-launch. Of course, it is natural to think that the trend will continue if the highest price is updated. As a workaround, it is wise to cut off the loss and run away. After that, if you see any signs that you will start dropping, you can re-enter.

Features when buying from selling

This time, it is a point to aim for a repulsion from big selling to buying. It may be the royal road to put a buy entry in the blue frame where selling and buying are intense. However, as you can see, it has dropped significantly from the point of rubbing. In such a case, it is the same as the case of buying to selling, and this movement gives up the repulsive buying and lowers it, but after that, you can see that full-scale buying has started.

AUD/JPY 1 Hour Term Leg 01-2022

Difficult chart example

There are traps like the ones above when buying or selling repulsion, but some traps like the ones below may occur more than once. The example below is an hourly AUD / JPY for February 2022. As you can see from the blue frame, although buying and selling are rubbing twice, selling wins and drops significantly both times. In this way, the flow of rubbing and pretending to go up and going down may be repeated.

AUD/JPY 1 Hour Term Leg 02-2022

Precautions for repulsion entry

Please be aware of the following when entering from buy to sell and sell to buy.

Do not enter while updating the highest and lowest prices

When it comes to aiming for a buy-to-sell rebound, don’t enter while you’re hitting a high. This is because the highest price keeps rising as long as it keeps updating. In the meantime, even if you enter, you will only lose. When buying from selling, stop entry while the lowest price is updated. In the meantime, even if you fight, you will only lose. Ideally, you should enter where you are in a dispute between buying and selling.

Even if you enter, it does not reverse at all

Even if you put in a sell when aiming for a repulsion from a buy to a sell, you may not get a sell at all. At that time, the buying is probably winning, and the buying pressure will push you, so you have to give up once. Stop loss and wait until the flow changes. The opposite pattern is used when buying from selling.

Do not enter by looking at short-term legs

Looking at the short-term bar, it becomes difficult to grasp the conversion between selling and buying in a big flow. It is not a good idea to look for a repulsion point on the 1-minute or 5-minute bars. You will be deceived by temporary price movements and will be hurt. You can even look for a repulsion point in 30 minutes or 1 hour.

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