Price was consolidating in a symmetrical triangle, broke down and then closed below it. This is usually BEARISH.
But today, it closed back above and inside the triangle again, invalidating the previous breakdown. This makes a FALSE BREAKDOWN/ BEAR TRAP.
False breakdowns/breakouts leads to a massive move on the opposite direction. In this case, UPSIDE.
So, we can see price going up till the upper line of triangle and eventually breaking out as well.
This can be a good entry point with stop loss below the swing low and next entry can be on the breakout of the triangle.
But today, it closed back above and inside the triangle again, invalidating the previous breakdown. This makes a FALSE BREAKDOWN/ BEAR TRAP.
False breakdowns/breakouts leads to a massive move on the opposite direction. In this case, UPSIDE.
So, we can see price going up till the upper line of triangle and eventually breaking out as well.
This can be a good entry point with stop loss below the swing low and next entry can be on the breakout of the triangle.