Trap Candle ThorenFX

This tool identifies Trap Candles by combining swing structure, bias shifts, and momentum shifts. The indicator evaluates recent highs and lows to define directional bias, tracks consecutive momentum candles using a custom AO-based sequence, and triggers signals only when the trend bias flips and momentum contradicts the prevailing direction.

The script uses a 20-candle swing lookback to detect the most recent Highest High and Lowest Low. When the market touches these swing extremes, the bias is updated (bullish or bearish). After a bias is confirmed, the indicator waits for a sequence of momentum candles in favor of the trend and then looks for an opposing candle to identify a trap.

Trap signals are only valid if they occur away from current swing extremes, filtering noise and late entries.

BUY Signal logic

Price touches a swing Low to set bullish bias

A minimum sequence of green momentum candles forms

First red momentum candle after the sequence triggers a BUY trap

Signal only prints if the swing Low is not hit again

SELL Signal logic

Price touches a swing High to set bearish bias

A minimum sequence of red momentum candles forms

First green momentum candle after the sequence triggers a SELL trap

Signal only prints if the swing High is not hit again

A compact table display highlights the latest active signal for quick visualization.

How to use

Use in trending or post-liquidity grab environments

BUY traps indicate potential bearish exhaustion followed by bullish reversal

SELL traps indicate potential bullish exhaustion followed by bearish reversal

Combine with structure confirmation and lower-timeframe entry techniques

Works best when aligned with swing bias and momentum context

Avoid signals that form directly at swing extremes; this filter is already built-in but additional confluence improves reliability

No indicator is 100% accurate — it’s all about understanding the logic behind the signals.