The trap zone is a price range with high price and low price boundaries in a given time frame between two money-making zones:
- It starts at the end point of the previous money-making zone
- It ends at the start point of the next money-making zone
Many real time examples of a trap zone in the NASDAQ 30m chart have been shown here very frequently. Here is a link to a chart for your review.
Below is my classification of the trap zone:
- Bullish trap zone
- Bearish trap zone
The life span of a trap zone:
- Life starts at the end point of the previous money-making zone
- Life ends at the start point of the next money-making zone
The trap-zone is always dynamic, and its dynamics has been described before.
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