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To learn more about this pattern, please read the bull trap pattern description.
Bull trap variation pattern is a bull trap pattern that appears in 6 columns instead of 4.
In bull trap pattern, the double top buy pattern is immediately followed by double bottom sell pattern. However, in variation patterns, the double bottom sell pattern does not happen right after the bullish pattEven though the reverse signal did not arrive immediately, it occurred after consolidation, which further proves the strength of the bears and the weakness of the bulls.
Sometimes, the Xs in the 2nd and 3rd columns are at similar levels, resembling the traditional head and shoulders bearish reversal pattern.
Prashant Shah explains this pattern in his book on P&F charts.
Click here to learn more about the pattern.
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.