Bear Trap Variation

Developed at Definedge.

To learn more about this pattern, please read the bear trap pattern description.

Bear trap variation pattern is a bear trap pattern that appears in 6 columns instead of 4.

In the bear trap pattern, the double bottom sell pattern is immediately followed by the double top buy pattern. In variation patterns, the double top buy pattern does not occur immediately after the bearish pattern. The variation also makes sense despite the fact that the reverse signal did not come immediately. Instead, it occurs after consolidation, and it still reflects the strength of bulls and the weakness of bears.

Sometimes, the Xs in the 2nd and 3rd columns are at similar levels, resembling the traditional inverted head and shoulders bullish reversal pattern.

Prashant Shah explains this pattern in his book on P&F charts.

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This pattern can be plotted on the chart by adding it from the study menu in TradePoint & RZone. The pattern is also available in the system builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.