The 4 Legged Dog Trap is a price pattern that often catches traders off guard. It typically reverses direction after the fourth leg, trapping those who enter too late on the fourth leg.
Example of a bullish 4 Legged Dog Trap, which can lure new sellers at the bottom (4) but then quickly reverses up.
The 4 Legged Dog Trap pattern works just as well for shorts as it does for longs:
Example of a bearish 4 Legged Dog Trap, which can lure new buyers at the top (4) but then quickly reverses to the downside.
This trapping price pattern is usually hidden on time-based charts, giving AlgoBox™ users/traders yet another edge in the markets.
Example
STUDY: Vinny E. Mini shows a Flag Layout screenshot of a 4 Legged Dog Trap - a good example with Order of Operations.
Recognizing a potential 4 Legged Dog Trap before it completes is critical to managing risk and stalking trades.
Video Tutorials: 4 Legged Dog Trap
WATCH: This short video explains the 4 Legged Dog Trap strategy.
WATCH: Vinny E. Mini teaches the 4 Legged Dog Trap Strategy in this video tutorial.
