Shorts by KD Investor

🚨 Don’t fall into the Stock Market Liquidity Trap!
In this short video, I explain Buy-Side & Sell-Side Liquidity Traps in simple words that every trader can understand. These traps are the biggest tricks used by smart money to trap retail traders in fake breakouts and breakdowns

video credit @protradingschool6692

👉 Watch till the end to learn:
✅ What is a liquidity trap?
✅ Buy-side trap (Bull Trap) explained
✅ Sell-side trap (Bear Trap) explained
✅ How to avoid getting trapped in trading

⚡ 99% of traders lose because of this mistake… Don’t be next!

📈 If you want to grow as a successful trader, make sure to like, share, and subscribe for more powerful trading tips!

#StockMarket #TradingTips #LiquidityTrap #BullTrap #BearTrap #SmartMoney

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“Liquidity Trap EXPLAINED in 60 Seconds ⏳ _ Stock Market Trick”#BullTrap#BearTrap#BreakoutTrading

KD Investor

51 minutes ago

Transcript

00:00Now that you understand how liquidity works, let's take a closer look at two common liquidity traps you've probably seen before.

00:06Let's start with a buy-side liquidity trap.

00:08Take a look at this chart example. The market is in a range.

00:10You see a clear resistance level looks like the perfect spot to go short.

00:13So you enter a sell trade, placing your stop just above resistance.

00:17Meanwhile, breakout buyers are stacking buy stops above the same level, expecting a bullish breakout.

00:21But guess what happens? Price suddenly spikes above resistance, stops out the sellers, and triggers the breakout buyers.

00:26Then it snaps back inside the range.

00:28Both sides are wiped out. That entire move, it was just a liquidity sweep.

00:31A classic buy-side stop hunt in a range-bound market.

00:35Now let's break down a sell-side liquidity trap.

00:37Here's what it looks like. The market is trending down.

00:39You spot a solid support level. You go long, expecting a bounce.

00:42Stop-loss is below support, of course.

00:45At the same time, breakout traders are stacking sell stops below that level, betting on a breakdown.

00:49Price breaks down, triggers both sets of orders, then reverses back up.

00:52Price breaks down, triggers both sets of orders, then reverses back up.

00:54Price breaks down, triggers both sets of orders, then reverses back up.

00:55Price breaks down, triggers both sets of orders, then reverses back up.

00:56Price breaks down, triggers both sets of orders, then reverses back up.

00:58Price breaks down, triggers both sets of orders, then reverses back up.

01:00Price breaks down, triggers both sets of orders, then reverses back up.

01:02Price breaks down, triggers both sets of orders, then reverses back up.

01:03Price breaks down, triggers both sets of orders, then reverses back up.

01:05Price breaks down, triggers both sets of orders, then reverses back up.

01:06Price breaks down, triggers both sets of orders, then reverses back up.

01:08Price breaks down, triggers both sets of orders, then reverses back up.

01:09Price breaks down, triggers both sets of orders, then reverses back up.

“Liquidity Trap EXPLAINED in 60 Seconds ⏳ _ Stock Market Trick”#BullTrap#BearTrap#BreakoutTrading

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