Silver Buy | Bull Trap and Stop Loss Hunting

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This bull trap and then pullback to stop runs (stop loss hunting) setup have resulted in very good trading opportunities before:

The psychology behind these moves are basically that traders see a breakout and enter trades but then price makes a pullback/retracement to take out stops and then reverse and continue in the original breakout direction.

You can always ask yourself – where are traders in pain? This can help a lot finding good trades.

Instead of buying the breakout (buying high) these stop loss hunting entries will give you a much better entry point.

The risk reward ratio on these trades are very good.

Let me know in the comment section below if you have any questions.

Happy trading,

Johan