A Classic Trap Move on the GBP/AUD on the 10 Minute Chart – Hard to Miss This One!!
GBP/AUD delivered a classic trap move on the 10-minute chart. Price spiked sharply. Traders chased the breakout. But it was a fakeout. Volume price analysis (VPA) made it hard to miss.
There are always traps being laid for the unwary trader, but for students of the volume price methodology these are always very easy to see, and in the London forex session we highlight one on the GBP/AUD on the 10-minute chart which was hard to miss!!A classic trap move on low volume with a nice wide spread up candle….then congestion and the reversal follow. Price action traders would have followed this one higher. Volume price analysis traders would have closed out, and then joined any reversal lower.
Spotting the Trap with VPA
The spike looked bullish at first. Price broke resistance fast. Many bought the move. But volume was low—no conviction. This screamed trap. Quantum indicators on NinjaTrader or MT5 highlighted the divergence clearly.
Confirmation and Reversal
Price reversed lower on high volume. This confirmed distribution. Sellers stepped in heavily. The trap caught chasers. VPA showed exhaustion early. Anna Coulling’s methodology avoids these with volume confirmation.
Lessons from This Setup
Trap moves like this teach patience. Wait for volume support on breakouts. Low volume spikes often reverse. Quantum Trend Monitor and Accumulation/Distribution tools spot them fast.
This GBP/AUD example was hard to miss for VPA traders. Quantum indicators turn traps into opportunities. Stay disciplined and let volume guide you.
What Volume Reveals in a Trap Move
Trap moves are common in trading. They lure traders into false breakouts. Price spikes sharply. Many chase the momentum. But it’s a trap. Volume price analysis (VPA) reveals the truth. Volume exposes lack of conviction.
How Trap Moves Form
A trap often starts with a breakout. Price breaks support or resistance. Excitement builds. Retail traders enter—FOMO drives buying (or selling). But professionals do the opposite. They fade the move—selling into strength or buying weakness.
What Volume Reveals
Volume is the key clue. In true moves, high volume confirms conviction. In traps:
- Low Volume on Spike: Price surges but volume stays flat or low. This shows no real participation. Professionals absent or opposing.
- Reversal on High Volume: Price reverses. Volume spikes—conviction appears. This confirms the trap. Sellers (or buyers) dominate.
Quantum indicators on NinjaTrader or MT5 highlight this. Trend Monitor warns of fading momentum. TickSpeedometer shows low participation on spikes.
Practical VPA Example
EUR/USD spikes higher on news. Candles widen. Traders long the breakout. But volume low—no conviction. Price reverses lower on high volume selling. Trap sprung. Short the failure for profit.
Lessons from Trap Moves
Traps teach patience. Wait for volume confirmation. Avoid low-volume spikes. VPA spots professional intent. Anna Coulling’s methodology turns traps into opportunities—trade with the smart money, not against.
Volume reveals truth in trap moves. Low on spike = trap. High on reversal = conviction. Quantum tools make spotting them reliable. Stay disciplined—let volume guide you.
By Anna Coulling