A Quick Move Up is a Trap — Unless It Breaks This One Number
Feb 10, 2025
A Quick Move Up is a Trap—Unless It Breaks This One Number
Why Most Traders Get Suckered In
Ever see a stock drop hard—then suddenly pop back up?
It’s fast. It’s aggressive. It looks like the start of a big move up.
So what do most traders do?
They chase it.
They think, “Oh man, this thing is reversing hard—I need to get in before I miss it.”
They FOMO into the green candle… and 5 minutes later, they’re stuck in a trap.
The bounce fails. The stock collapses back down. And now, instead of riding the wave up, they’re scrambling to cut losses.
🔥 What I Said Live:
“It’s still a downtrend, so it can all fall to hell. You gotta be careful with this quick little move up.”
That’s how you see the game before it plays out.
I wasn’t watching the bounce—I was watching whether it could actually change the trend.
And guess what?
It couldn’t. And it fell hard.
Why These Fake Moves Happen
Most traders think the market is random. It’s not.
There are forces behind every move, and these quick pops are designed to do one thing:
Trap retail traders before the real move.
Here’s what happens behind the scenes:
Price drops hard → Everyone sees red.
A bounce comes in → It’s fast, sharp, and convinces traders that the worst is over.
Retail jumps in long → They think they’re “buying the bottom.”
The bounce fails at resistance → The pros start dumping on the buyers.
Price collapses lower → The “dip buyers” are now trapped, forced to sell at a loss.
🔥 What I Said Live:
“If we don’t break 25 right now, feed my words—this all falls to hell.”
The entire move depended on breaking one number—25.
It didn’t break.
And because I knew what to look for, I wasn’t suckered into the trap.
Instead, I watched retail get lured in… then made money on the real move down.
The Difference Between a Reversal and a Trap
So how do you know when a move is legit and when it’s fake?
It all comes down to one thing:
Can it break key resistance?
Fake moves fail at resistance. Real moves break through with conviction.
Here’s the simple checklist I use to tell the difference:
🚨 Signs of a Trap:
Price moves up too fast, too soon (before confirming a base).
Volume spikes aggressively but doesn’t continue.
The move stalls at a key level (e.g., previous support now acting as resistance).
No follow-through—just a fast pop and drop.
✅ Signs of a Real Reversal:
Price breaks through key resistance and holds.
Volume stays high after the breakout.
The pullback after the breakout is shallow and gets bought up fast.
Buyers step in at higher prices (instead of dumping at resistance).
Most traders don’t know the difference. That’s why they get trapped again and again.
Real Example: How I Played It
On this day, I watched the market drop hard.
Then, BOOM!—a quick snap back up.
Most traders jumped in long.
I waited.
“It’s still a downtrend, so it can all fall to hell.”
I wasn’t watching the green candle—I was watching if it could actually change the trend.
And the key level? 25.
If it broke, fine, I’d consider the long side.
But it didn’t.
So instead of getting trapped, I went short on the next drop and rode the real move down.
Retail traders were still staring at the bounce, wondering why it failed.
By the time they figured it out, I had already made my money and moved on.
How to Trade Like a Sniper, Not a Machine Gun
If you’re always getting caught in fake moves, here’s what you need to change:
Stop chasing green candles.
Just because price moves up doesn’t mean it’s going higher.
If it doesn’t break resistance, it’s a trap.
Wait for confirmation.
Ask yourself: Did price actually break the key level?
If not, you’re just gambling.
Be willing to let the trade go.
The best trade is sometimes the one you don’t take.
If it’s a real move, there will always be a second entry.
Most traders play the market like a machine gun, shooting at everything that moves.
I trade like a sniper—waiting for the right shot, then taking it with precision.
That’s the difference between winning traders and losing traders.