Lesson 7 of 25
The third and fourth touch is the trap
By the third look, everyone is fading the level and their stops are stacked behind it. That is why it breaks.
What you see
- Two clean rejections, then a range under the level.
- A third push into the same price.
Why it happens
- Each test eats the orders defending the level.
- Each test adds fresh stops behind it.
- Thin supply plus a big stop pool equals a break.
How to trade it
- Do not fade the third touch.
- Expect the sweep.
- Trade the reclaim, not the level.
Journal it: Count the touches before you enter. Write the number down.