21 EMA Trap
*Last Update: Aug 14, 2024
The 21 EMA Trap is a set up to be used specifically on a strong trending day. The idea for the set up is to get retail traders trapped fighting the overall day trend and use there stops as fuel for an aggressive move back in the direction of the overall day's trend.
*It should be noted that this trade has a much higher chance of working out if the trend is strong. If it is a weaker trending day, by the time the 21 EMA is broken it is possible that we have already reversed the trend*
Prior To Taking A Trade:
- Are we trending in the direction of the current 30min structure?
- Is retail likely on the wrong side of this trade?
- Is big money in this trend? Every small dip getting bought/every pop getting sold?
Entry Criteria
- Strong Trending Day
- Very few 21 EMA crosses on the day so far (previous dips/pops should have quickly failed to the counter-trend side)
- Ideally 2 tries at a continuation of the counter-trend move to bait in retail traders
- Fakeout move for continuation in the counter-trend direction
- HL/LH set going back in the direction of the trend (Trapping retail)
- Best entry at a key level(s) - better if there are multiple key levels
- Ideally there should be room for continuation of the trend on HTFs
Exit Criteria (when this trade works quickly off your entry, it should be a trade to hold)
Winning Trades - ** DO NOT CLOSE BEFORE 21 EMA REBREAK
- Traget recent highs
- Target lines based on 30min chart
- 1min Trendline Break
** STOP ** on this trade can origionally be at a candle close below/above countertrend fakeout candle, however if the move is aggressive off of our entry, STOP can be brought up to breakeven to eliminate risk
Examples of the 21 EMA Trap working (see below)
