The 5-Minute Trap Trade Strategy Explained (Setup, Rules, and Examples)
A simple day trading pattern that catches counter-trend traders and reveals real supply and demand.
Here’s something for you price action traders…
A pattern I’ve been spotting more and more lately.
I’m calling it: The 5-Minute Trap.
It’s mostly a scalp play, or a trigger into a broader directional idea. But it’s clean, makes sense, and gives a decent number of trades in the right conditions.
5 MINUTE TRAP TRADE
#1 A Strong Trend
You need a strong directional move, usually 3+ big 5-minute candles in the same direction. Think trend day… or an intraday squeeze that just keeps going.
#2 A Sudden Counter Candle
Then, all of a sudden, a big opposing candle appears.
Looks aggressive. It’s got a quick pace to it.
Suckers in counter-trend traders, thinking “this is the top/bottom.”
#3 Instant Rejection
Then price flips back almost immediately.
Breaks through the high/low of that counter candle and continues in the original trend.
That’s your trap.
The counter-trend crowd just got caught, you get an insight into true supply/demand… and now you have a clear trigger and stop for the play.
How to Trade It
Entry: In the direction of the initial move as price breaks the high/low of the trap candle
Stop: Just above/below the same candle
Target: Scalp it out or use a sensible price target.
Also, if the reversal is genuine (which, of course, many are), you’ve got the advantage that the trade never triggers. 
Let’s have a look at some recent examples…
DOW Mid-Morning Trend Up
Strong 5-min drive higher… quick counter trend candle… then straight back to new highs.
Silver & Crude Oil Sell-offs
Multi-bar aggressive selling, fake green candle, then immediate roll-over. Textbook low-timeframe traps.
They seem to be happening more and more at the moment with all this increased vol…
If you’re a day trader, I think they are worth watching out for.
Happy trapping!
Like catching traders offside? 
You’ll love my Trapped Traders Playbook webinar recording!