{"id":48903,"date":"2016-02-07T05:00:45","date_gmt":"2016-02-07T13:00:45","guid":{"rendered":"https:\/\/brookstradingcourse.com\/?p=48903"},"modified":"2018-03-25T03:04:57","modified_gmt":"2018-03-25T10:04:57","slug":"advice-on-2nd-leg-traps","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/pt-br\/ask-al\/advice-on-2nd-leg-traps\/","title":{"rendered":"Ask Al: Advice on 2nd leg traps"},"content":{"rendered":"<h2>BPA trading room Q&amp;A: November 18, 2015<\/h2>\n<p class=\"content-box-green\">Do you have any advice on how to look for second leg traps? For example, bar 20 to 22 could be a second leg trap.<br \/>\n <em>Video duration: 3min 4sec<\/em><\/p>\n<div style='position:relative;height:0;padding-bottom:56.25%'><iframe class='sproutvideo-player' src='\/\/videos.sproutvideo.com\/embed\/189adfbb1319efc990\/6c8697c2e8410935?playerTheme=dark&amp;playerColor=' style='position:absolute;width:100%;height:100%;left:0;top:0' frameborder='0' allowfullscreen><\/iframe><\/div>\n<p><\/p>\n<p class=\"caption\">You can also view this video on <a href=\"https:\/\/youtu.be\/LalkXfTPOi4\" target=\"_blank\" rel=\"noopener\">Al&#8217;s YouTube Channel<\/a> if needed.<\/p>\n<h2>Video transcript \u2014 Any advice on 2nd leg traps<\/h2>\n<h3>A reasonable short trade<\/h3>\n<p><a href=\"\/wp-content\/uploads\/2016\/02\/es-chart-ask-al-45-second-leg-trap.png\" rel=\"attachment wp-att-48908\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" src=\"\/wp-content\/uploads\/2016\/02\/es-chart-ask-al-45-second-leg-trap-300x232.png\" alt=\"ES Chart Ask Al 45 Second Leg Trap\" width=\"300\" height=\"232\" class=\"alignleft size-medium wp-image-48908\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/02\/es-chart-ask-al-45-second-leg-trap-300x232.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/02\/es-chart-ask-al-45-second-leg-trap-600x464.png 600w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/02\/es-chart-ask-al-45-second-leg-trap.png 756w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>[Bars] 20 to 22? Yeah, it\u2019s possible. At that point in the day &#8212; at that point in the day, right here, we\u2019re at the top of yesterday\u2019s range. We obviously have a trading range. We\u2019re probably in breakout mode. We\u2019re probably going to double the range either by going up or by going down. We have room to the 60-minute moving average and to yesterday\u2019s close so we can easily go down. And I thought it was a reasonable short. But with 20, 21 closing on their highest, I thought more likely the best the bears would get would be sideways.<\/p>\n<p>So for second leg traps, usually they\u2019re big. That\u2019s not very big. And usually, they look especially bullish. They really look like they\u2019re going to be a breakout and they\u2019re going to lead to something really big. Or in the case of a bear, here\u2019s a possible second leg trap here &#8212; very bearish, right? Then we had this really good example over here, rally &#8212; very strong rally. We were still below the top of the bear leg, the day\u2019s high, and then up here. And we have gap bars 50 bars into a trend, so the bulls need to do more to convince me that it\u2019s going to be a bull trend. And when that\u2019s the case &#8212; and that\u2019s the kind of environment when I think about a possible second leg trap &#8212; when the bulls need to do more. As strong as the bulls look, they need to do more; they need to get above the top of this bear leg. They need to get above this, otherwise it could be simply a second leg trap in either a trading range or a broad bear channel. In this case, it turned out to be a second leg trap in a broad bear channel.<\/p>\n<h3>What about breakouts?<\/h3>\n<p>So then, how do you distinguish it from a <a href=\"\/how-to-trade-manual\/trading-breakouts\/\" target=\"_blank\">breakout<\/a>? Context. If the context is really good for a breakout, I trade it as a breakout. This could have been a second leg trap. I mentioned that at the time. Very climactic bar, so a possible high climax instead of a measuring gap. And then 62 turned back up at the 55 high. And 63, 62 &#8212; you can see 63 &#8212; as soon as 62 closed, they bought it. You can see the gap between the open of the 63 and the high of 62. So to me, it looked like the market was going up, at least some.<\/p>\n<p>So I\u2019ll talk a lot more &#8212; or I have talked in the new videos, I talk a lot more about second leg traps in channels, and trading ranges, and I try to make it clear. But the main thing is, if it\u2019s reasonable to think the market\u2019s still in a trading range or a channel, I\u2019m much more willing to believe the big breakout is going to be a trap. If, on the other hand, it\u2019s clearly above all resistance &#8212; if we\u2019re talking about a bull breakout &#8212; then I\u2019m much more likely to believe that a big move up is going to be a measuring gap rather than an exhaustion gap.<\/p>\n<p><em>Al Brooks<\/em><\/p>\n<p><a title=\"Al Brooks&#039; trading room\" href=\"https:\/\/www.brookstradingcourse.com\/online-day-trading-room\/\">Information on Al&#8217;s Online day trading room<\/a><\/p>\n<hr \/>\n","protected":false},"excerpt":{"rendered":"<p>BPA trading room Q&amp;A: November 18, 2015 Do you have any advice on how to look for second leg traps? For example, bar 20 to 22 could be a second leg trap. Video duration: 3min 4sec You can also view this video on Al&#8217;s YouTube Channel if needed. Video transcript \u2014 Any advice on 2nd [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[159],"tags":[],"class_list":{"0":"post-48903","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-ask-al","7":"entry","8":"has-post-thumbnail","9":"override"},"featured_image_src":null,"author_info":{"display_name":"BTC Admin","author_link":"https:\/\/www.brookstradingcourse.com\/pt-br\/author\/richardhk\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/48903","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/comments?post=48903"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/48903\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media?parent=48903"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/categories?post=48903"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/tags?post=48903"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}