Trapped traders
Trapped traders are buyers who were aggressive at the very top of a bar, or sellers at the very bottom, just before price turned on them. AXL Charts counts them as trapped when the next bar closes beyond the far end of their bar: below its low for buyers, above its high for sellers.
Buying at the worst price
Late in a rally, buyers rush in and lift the offer at the bar's high: a buy imbalance on the top row. They bought where price was furthest from where it had been trading.
Then the next bar turns and closes below the whole of the first bar. Every buyer in that bar is now losing, and the ones who bought the high most of all.
Why trapped traders move price
A trapped buyer has to get out, and getting out means selling. Their stop orders often sit just below the bar, and when those are hit they sell into a market already falling.
That is why traps matter: the traders caught on the wrong side add fuel to the move against them.
A close, not a wick
AXL Charts' rule is strict on purpose. The imbalance has to be on the very top row, where the buyers chased hardest. And the next bar has to close below the trapping bar's low. Trading below it for a moment is not enough.
A trap that lasted a few seconds hurt nobody. Because the rule needs the next bar's close, a trap is marked once that bar has finished.
Sellers trapped
The mirror image works the same way. Sellers hit the bid hard at a bar's very low, a sell imbalance on the bottom row, and the next bar closes above the bar's high.
Trapped sellers have to buy back, and their buying can push price further up.
Trapped traders in AXL Charts
Switch on Auction Structure in the Indicators menu to mark trapped buyers and sellers on the chart. Each trap can be carried to the right as a level, has its own colour and line, and can raise an alert.
A trap reads the buy and sell split, which NSE data does not label and AXL Charts infers. A trap at a level that already matters, such as a value area edge or the day's high, deserves more weight than one in the middle of nowhere.
Questions
What are trapped traders?
Traders who were aggressive at the worst price of a bar - buyers at its high or sellers at its low - just before price reversed against them.
How do you spot trapped traders on a footprint chart?
Look for a buy imbalance on the top row of a bar, followed by a bar that closes below that bar's low. For sellers, a sell imbalance on the bottom row and a close above the high.
Are trapped buyers bearish?
In tone, yes: they may have to sell to get out, which can add to the fall. It is a clue, not a guarantee.
Why does AXL Charts wait for the next bar to close?
Because a reversal that only lasted a moment trapped nobody. Waiting for a close beyond the bar keeps the marks to traps that hurt.