A price-action setup for intraday traders: when price drops from a recent high then bounces up briefly, that false rally traps sellers and signals a sell entry on lower timeframes. Wait for the bounce to complete before entering, not before.
So let's just say in this scenario here, we're looking at H1 or even M15, whatever, whatever you want to use as like a scalper or intraday trader. We sell off from this high. From up here, we move to the downside, okay? And we have liquidity down here. We get some highs and lows printed on and we come, we approach the low. So now look how price is approaching these lows down here. We're approaching the lows. All of a sudden you get that move up to the Upside. This is where a lot of traders, this is where they make the mistake. They can't wait for this to occur. But if you learn to wait for this to occur, this false move to the Upside, then you can now understand that we have just taken out sellers, right? So we trapped sellers, meaning high respected high. High respected high moved away to the downside. So there's liquidity above that high. Simple stuff. And then from here we get a false run to the upside, we take out that seller liquidity, and then that move occurs, right? So it's just basically like this boom and boom. So this would be the sell opportunity on the lower time frames, using the higher time frames to aid that.
