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Trapped traders

Trader's Glossary · Order flow

Trapped traders

Definition. Market participants who took a position in a direction that quickly proved wrong, e.g. on a failed breakout. Their subsequent exits can fuel the move in the opposite direction.

How it works

Aggressive orders on the breakout bring no follow-through, and price returns to the range. Participants who entered on the breakout are now losing and close their positions, which reinforces the move back.

Example

Heavy aggressive buying just above the previous day's high, then a quick return below it. The footprint shows where the buyers got “trapped”.

What to watch out for

It's an interpretation of market behaviour, not a fact. You don't know who's behind the trades or what their plans are.

This is the footprint in the Hetman Terminal (Hetman X-Ray). Screenshot from the Hetman Index (IHA) – a training instrument, simulated data.
This is the footprint in the Hetman Terminal (Hetman X-Ray). Screenshot from the Hetman Index (IHA) – a training instrument, simulated data. See all the Hetman Terminal tools →

♛ The Hetman Terminal is part of Club: live for Dow Jones from the Bishop plan, 6 markets (Dow Jones, S&P 500, Nasdaq, gold, crude oil, Bitcoin) and automatic detection of order flow events from the Rook plan. A session on the ♛ Hetman Index (training, simulated data) in the full panel comes with the Knight plan and above. Compare the plans →

See also

Stop run, Acceptance and rejection, Footprint.

More in Hetman Capital Club

You'll find the full explanation with graphics, examples and exercises in the 📖 Order flow encyclopedia space, and its use in the live market in the 🔴 Live Room. Both are available to Club members (in Polish).

Educational content, not investment advice.