For a more detailed/professional explanation websearch Wyckoff Spring/upthrust.
In general these trap moves are going to present as a break outside of the trading range boundary with a quick reaction back into that range.
Make note of the volume that accommodates this move... The greater the better.
Not always indicative of a reversal, but should serve as a warning that price may not continue in that specific direction.
This is exactly why you want to avoid chasing as price nears the trading range boundary.
In an uptrend you are looking for entry's nearing or below support (below median)
In a downtrend you are looking for entry's nearing or above resistance (above median)
What you also want to do is:
Avoid buying into weakness/resistance/supply
Avoid selling into strength/support/demand
Avoid entry in the middle of the TR
In general these trap moves are going to present as a break outside of the trading range boundary with a quick reaction back into that range.
Make note of the volume that accommodates this move... The greater the better.
Not always indicative of a reversal, but should serve as a warning that price may not continue in that specific direction.
This is exactly why you want to avoid chasing as price nears the trading range boundary.
In an uptrend you are looking for entry's nearing or below support (below median)
In a downtrend you are looking for entry's nearing or above resistance (above median)
What you also want to do is:
Avoid buying into weakness/resistance/supply
Avoid selling into strength/support/demand
Avoid entry in the middle of the TR