Main institutions usually try their best to lure small and medium-sized investors into chasing up or selling in order to achieve the goal of washing up or selling. With the increasing understanding of market makers' operational techniques among investors, their methods of creating traps are becoming increasingly covert and changing. Investors can only grasp the mainstream market correctly by distinguishing between long and short traps.

The long trap often occurs when the market is consolidating and forming a head, and the trading volume has already begun to shrink. However, most investors have not yet given up on the future trend and are unwilling to make a comeback. Therefore, its completion time is relatively long, and it also has the following characteristics:

(1) The formation of a bullish trap in a bullish market often occurs during the mid consolidation process; In a bearish market, it is inevitable to appear in the bullish phase after a major rebound.

(2) The support of the main average price line has a trend of getting closer to the market price, and the original upward angle is gradually easing from steep. This situation implies that as long as there is a long bearish trend in the future, the support system of the moving average will be completely destroyed.

(3) The shrinking period of quantity begins to form, and there is a downward trend in the medium to short term average line, which may even slightly form an M-head trend.

The bearish trap often occurs when the market is consolidating and forming a bottom, and the trading volume is also extremely reduced. However, most investors are unwilling to buy too much due to extreme bearish views on the future, so its completion is relatively long and has the following characteristics:

(1) The bearish trap in a bullish market is that the market price is often in a consolidation stage after a large retracement adjustment; Or the bottom stage after a temporary decline in a bearish market.

(2) The pressure on the main average price line is gradually approaching the market price trend, and the original downward angle is gradually easing from steep. As long as there is a long red in the future, the anti pressure system of the moving average may be overcome. Stock trading strategy factory

(3) Although the volume is shrinking, there is a trend of upward trend in the medium to short term average volume line, and it may even slightly form a W-bottom trend. When judging whether the market is a bull trap or a bear trap, the performance of the market is crucial. When some key strategies are very covert, it can be difficult to make a judgment, but there is one key point, which is to be cautious.

Specifically, the coping strategies for long short traps are as follows:

(1) The coping strategy for the bullish trap is to maintain a wait-and-see attitude during the consolidation of the market or the mid stage that has not yet been confirmed, and wait until the support is fixed before taking a long position. Otherwise, once the long trap is established, it must stop losing and sell out after the original trend line breaks, because in a considerable downward trend in the future, the profits from short positions may be enough to compensate for the stop loss of long positions.

(2) The operational strategy of the bear trap is to maintain a wait-and-see attitude during the bottoming out or bottoming out process, and wait until the support of the bullish market is lost (or the pressure of the bearish market is confirmed to be strong) before emptying later. Otherwise, once the bearish trap is established, it will inevitably intervene to go long after the original trend line is broken, because the profit of going long in the subsequent considerable uptrend will be much greater than the loss of closing short.