Trap Zone Lite – Shinobi Lab

This indicator is designed for day traders, especially on lower timeframes such as the 2-minute chart. It highlights the Trap Zone: an area of congestion created by the 20-period moving average, the 200-period moving average, and the previous day’s closing price. This zone often acts as a heavy area of support or resistance where price can stall or trap participants.

What it shows:

A shaded Trap Zone box (congestion zone).

Two boundary lines that extend outward from the zone:

Zone + (above the trap) → context for bullish confirmation. A long signal forming here has stronger reliability.

Zone – (below the trap) → context for bearish confirmation. A short signal forming here has stronger reliability.

How to use:
The Trap Zone is meant as context, not signals. Traders should avoid taking setups inside the zone due to congestion. The value comes from using the boundaries:

Avoid shorting in Zone + (too much overhead resistance from prior day close + MAs).

Avoid longing in Zone – (too much downward pressure).

Focus on confirmations that occur outside the trap zone for higher-quality setups.