Why the Market Loves to Trap Traders!!!
If trading ever feels personal, its not.
The market isnt hunting you; its hunting liquidity.
Understanding this single idea changes how you read charts forever.
1 The Market Moves Toward Liquidity, Not Logic
Most traders expect price to move because a pattern is complete or a level is perfect.
In reality, price moves to where orders are sitting.
Where is liquidity usually found?
- Above obvious highs
- Below obvious lows
- Around round numbers
- Near breakout levels everyone is watching
The market goes where the orders are, not where traders hope it goes.
2 Breakouts Are the Most Common Liquidity Pools
When price approaches a clear resistance, traders place:
- breakout buys above
- stop-losses from shorts just above
That creates a liquidity magnet.
Price spikes above the level, fills those orders
and often reverses sharply once liquidity is consumed.
Thats not manipulation... thats mechanics.
3 Traps Reveal Whos Really in Control
A trap happens when price:
- breaks a key level
- fails to follow through
- returns back inside the range
This tells you something critical:
The side that should have won didnt.
4 Professionals Dont Chase; They Wait
Retail traders react to the breakout.
Professionals wait for the reaction after the breakout.
They ask:
- Did price accept above the level?
- Did momentum expand or fade?
- Did structure shift or snap back?
Patience turns traps into opportunities.
The Core Lesson
The markets job is not to reward anticipation. Its to test conviction.
Once you stop trading where everyone else enters and start observing who gets trapped,
price action becomes clearer, calmer, and more logical.
Disclaimer: This is not finan