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