$BTC
Do you know what the trap is? Read and learn or refresh your memory
🪤The trap🪤🤔
What is the cross path and hack trap?
Penetration failure in the transverse path:
The origin of a cross path is a failure of the breakout and this is often caused by the formation of a trap at the top or bottom of the path. For a successful penetration, three main movements must be present:
1. Detachment: It is observed by a clear and significant departure from the exponential average (21) in the direction of the breakout.
2. Clarity: It is confirmed by the formation of a higher peak than a previous peak when breaching the top of the sideways track, or a lower bottom than the previous lowest low when breaching the bottom of the path.
3. Retest: Return to test the exponential average (21) or the limit of the crossed sideways path and then continue the breakout.
Cross path extensions:
The middle of the sideways path is a very important area where there are many tests and conflicts between market forces, and it is best to avoid trading in this area. The middle of the horizontal path is considered a strong support or resistance area, and breaking it indicates heading to a new limit to complete the movement
When the cross path is successfully broken according to the three conditions (separation, clarity, retest), targets are determined by extensions of the cross path either higher or lower. The first extension is the weakness of the compromised primary path, and the second extension is the second weakness of the path.
To learn about the price behavior after the breakout