A trap zone is a price area where moves tend to lure traders in and then reverse — classic stop-runs and failed breakouts.
Why traps form
Clustered orders and obvious levels attract liquidity. Price pushes just beyond, triggers stops, then snaps back.
How to use trap awareness
- Avoid placing stops inside a known trap zone
- Be skeptical of breakouts that happen directly into a trap
- Prefer entries with room to the next level
| Situation | Better choice |
|---|---|
| Entry inside a wide trap | Wait for resolution |
| Stop inside a trap | Move it beyond the zone |
| Breakout into a trap | Require confirmation |
Trap zones are estimates, not guarantees — combine them with mood and your risk plan.