Rethink the trap-zone again

Below is my definition for the trap zone:

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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