BULL TRAP

Close up charts of BULL TRAP enclosed below

A failed signal is among the most reliable of all chart signals.
When a market fails to follow through in the direction of a chart
signal, it very strongly suggests the possibility of a significant
move in the opposite direction.  For example note how the market abruptly reversed course after breaking out above the early high.  If the upside penetration signal were valid, the market should not  have retreated back to the lower portion of the consolidation and certainly not below its lower boundary,  The fact that such a retracement occurs almost immediately following the breakout  strongly suggests a "BULL TRAP"

Print this post