Published: July 19, 2025
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Bull and bear traps [Ichimoku Thread #13 🧵👇]

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1/12 👀🪤Even though Ichimoku is best suited for trend following, one of its advantages lays in the fact that it can help also navigate a range extremely well and give you huge hints whether some lows/highs are a trap or a real breakout - all thanks to the time factor. 🫴Here I

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2/12 🪤☁️First, let's start with the traps within the kumo. Obviously, a trap should occur at the bottom or top of the kumo, where the price either rejects or breaks. ❓But how can you guess which is more likely: to break the kumo or to reverse? There are a few hints for

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3/12 2⃣ By the time the price tests the kumo, Chiko Span is at the opposite side of the candles. I.e., if the price tries to break bullish the kumo but CS is below the candles. This is an EXTREMELY rare situation with a super high probability. I'd say, around 90% chance for

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4/12 3⃣ An example for a bear trap is when the price tests the bottom of kumo, while SSB is going up and Chiko Span is above the kumo. Very high chance for this support to hold and to end up as a bear trap. 🇬🇧🇯🇵This is because, translated to plain English this setup simply

5/12 Now, let's see some bull and bear traps examples beyond the kumo. 👀⛳️This is where the best R:R comes because the price is overextended and a normally above the kumo most people are bullish if they can't see the red flags. 3⃣ Chiko Span hasn't closed above the kumo (or

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6/12 4⃣ In this situation, the price is above the kumo but you get a Chiko Span divergence signaling a reversal. Using CS divergence you can spot the exact candle were the reversal occurs and even forecast the exact timing of the reversal in advance. And, another hint for this

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7/12 5⃣ In this situation, the price has lost Kijun Sen and is making a bearish retest. ⚠️Now keep in mind that if Kijun Sen is lost too early while Chiko Span is still above the candles it's not that clear whether it won't be reclaimed. To be more certain that it would

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8/12 6⃣ If the price has broken below the kumo, but keeps crawling below it without continuation and in the same time Chiko Span is above the past kumo - this is very suspicious. Theoretically if CS goes below the kumo the price can still dump, but such cases from my

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9/12 7⃣ When by the time Chiko Span crossed the past kumo, it also starts to cross through a "forest" of candles wich are below the kumo. This is very untypical and rare to see and very suspicious. Even though CS can eventually cross the candles as well and confirm the

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10/12 🫴🐂🪤Last but not least, there is another example of a trap which is on the "right" side of the kumo. I.e., a bear trap below the kumo or vice versa. But this is a very rare setup to see with a super high probability when the price is overextended and with a huge chance

Image in tweet by Dr Cat
Image in tweet by Dr Cat

11/12 In this thread I covered how to spot bull and bear traps with Ichimoku. If you found it useful feel free to share the original tweet which is the head of the thread (not this one) so it can reach more people.

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@DoctorCatX 🫡🙏

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JUST IN: 🇺🇸 President Trump to sign an executive order Thursday that aims to allow #Bitcoin and crypto to 401(k)s: Bloomberg

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