This is a trade on gold that I didn’t take (as I’m currently in the AUDUSD), but I have posted it as it’s interesting from an educational point of view.
The Bull or Bear trap is a setup that occurs often. In this case, price broke a prior swing high and encouraged bulls to get long. The smart money was waiting at supply and sold into the liquidity created by the bulls.
The bulls were left trapped and quickly exited causing the price to drop sharply!
The setup continued to play out through the day, and with potential targets at the marked demand zones would have provided a very nice return of 4 x risk.