Bull Trap Chart Pattern #1

A Bull Trap Candlestick Breaks And Closes Above A Resistance Level But The Next 1st
or 2nd Candlesticks After That Are Bearish
 You can see an obvious resistance level.
 Bull trap candlestick breaks the resistance level and closes above it.
 The 2 nd candlestick after the breakout is bearish.
 Note the next (2nd) candlestick is also bearish, almost a shooting star or
bearish pin bar type of candlestick.
Bull Trap Chart Pattern #2:
A Bull Trap Candlestick Breaks The Resistance Level and Goes Up But Eventually
Closes Below The Resistance Level Forming A Bearish Candlestick.
This is when the bull trap candlestick shoots up and then heads back down and forms a
bearish candlestick or it can be a bullish candlestick with a “bearish momentum.”

It is a one pattern candlestick. You are only looking for one candlestick that does this.

This chart below shows you are very good example:

 Price breaks through the resistance level as if a real upward breakout causing
buyers to jump in.
 Changes direction and head down and closes below the resistance level.
 Breakout of the low of this bull trap candlestick see price heading down.
 Bull trap candlesticks to look for in this situation are shooting stars or pin bar
candlesticks.
 Ideally, look for bearish candlesticks in this situation or extremely bearish looking
bullish candlesticks.
Bull Trap Chart Pattern #3
A Bullish Bull Trap Candlestick Breaks the Resistance Level, Goes Up But Closes Below
The Resistance Level. The Next 1 or 2 Candlesticks are Bearish
Read the above carefully. The bull trap candlestick must be bullish…it will be green
candlestick in other words.
 The only thing is that it must close below the resistance level.
 The fact that it is a bullish candlestick that closes below the resistance level will
cause many bulls (buyers) to think that the price will continue to go up…
 Then here comes the next clue: watch the 1st or 2nd candlestick after that. If they
are bearish candlesticks, then there’s a great chance that it is a bull trap.

Summary of Bull Trap Chart Patterns

1. A bull trap chart pattern is a bearish signal when you see one forming.
2. Ideally, we will see strong momentum breaking resistance
3. Look to short the break of the bearish candlestick
4. Failure of bull trap will be break of high so that’s a good stop location
5. You may get stopped out and another bear candlestick appears. The bull trap is
still valid as this may be coming from a higher time frame
6. Keep price action in mind as you look to take your profits. We are still in an
uptrend until proven otherwise.