The Pitfalls of the 9-20 Strategy in the Institutional Player's Trap Zone

                   Why the 9-20 Strategy Fails in the Trap Zone ?

The 9-20 strategy, which is often used to identify potential entry and exit points based on moving averages, tends to fail when applied in the institutional player's trap zone. This trap zone is a condition where market movements are manipulated by large players to trap smaller traders.

                                                                Case Study

Let’s begin with  market activity to illustrate this point:

Example 1.

• Initial Setup: There was a significant high break of a 5-minute candle, prompting traders to enter a long position based on the 9-20 strategy.
• First Entry Failure: Despite the anticipated upward momentum, the entry failed to hold.
• Second Attempt: Traders attempted to re-enter with more quantity, but this also failed following the low break, leading to a substantial stop loss of 150 points.

    Example 2. Consistent Failures 

In another instance, as soon as the low of the candle broke, the market reversed again. This consistent pattern of reversals and false breakouts within the trap zone further underscores the ineffectiveness of the 9-20 strategy under these conditions.

                                      The Trap Zones in Weekly CPR 

Understanding the nature of the trap zones within the weekly Central Pivot Range (CPR) is crucial for traders. These zones are designed to trap both positional and intraday traders:

1. Positional Trader's Trap Zone: Targets long-term traders, creating volatility and disrupting their positions.
2. Intra-Trader's Trap Zone: Affects intraday traders by causing quick reversals and trapping them in false breakouts.

                                                    Key Hints for Traders 

The primary takeaway is clear: the 9-20 strategy is unreliable within the institutional player's trap zone. This area is rife with manipulative practices that can lead to significant losses. By recognizing the signs of these trap zones and adapting strategies accordingly, traders can avoid falling into these traps.

Successful trading requires a deep understanding of market conditions and the adaptability of strategies. The failure of the 9-20 strategy within the institutional player's trap zone serves as a reminder to continuously evaluate and adjust trading approaches based on real-time market behavior. Staying informed and vigilant can help traders navigate these challenges and make more informed decisions. With a Gaining Knowledge on Trading, check in to the link of courses and avail discount by clicking on it also use ANALYSIS3 as a coupon code.