Last Updated: July 4, 2025
© 2025 The Richo Edge. All rights reserved. Content copyright timestamped 2025.
Overview
This module identifies trade setups vulnerable to false breakouts (bull traps) and distinguishes them from valid buy entry setups. It delivers a risk-aware analysis aimed at avoiding costly entry mistakes.
The RISI Framework Breakdown for Bull Trap vs Buy Setup
| Step | Name | Purpose |
|---|---|---|
| R | Role | Sets the AI’s posture and persona as a risk-aware institutional trader focused on breakout validation. |
| I | Insight | Analyzes price action, volume, momentum divergences, and market structure to detect bull traps versus genuine buy setups. |
| S | Strategy | Simulates potential price behaviors following breakout attempts, assessing risk of false signals. |
| I | Impact | Provides actionable trade guidance to avoid bull traps and confirm buy setups with risk mitigation. |
How to Use the Bull Trap vs Buy Setup Module
Copy and paste these prompts into ChatGPT sequentially, replacing [STOCK] with your target stock:
- Role Prompt:
Activate ProTrader Mode for Risk-aware Bull Trap Detection and Buy Setup Validation - Setup Analysis Prompt:
Analyze recent price action, volume, momentum divergences, and market structure for signs of bull traps versus valid buy setups in [STOCK]. Limit output to one paragraph. - Behavior Simulation Prompt:
Simulate price movement scenarios following breakout attempts, highlighting risks of false breakouts and confirming buy setups for [STOCK]. Limit output to one paragraph. - Impact (Implications) Prompt:
Summarize actionable recommendations to avoid bull traps and identify confirmed buy setups for [STOCK]. Provide one clear, risk-aware paragraph.
Copyright Notice:
The prompts, frameworks, and related content on this page are the exclusive intellectual property of The Richo Edge and are protected by copyright law. Unauthorized copying, reproduction, or redistribution is prohibited. Use of this content is permitted for personal, non-commercial purposes without prior authorization. Commercial use requires explicit permission. We encourage you to write about or reference our frameworks in blogs or articles, with clear credit to The Richo Edge. For permission requests, please contact us via the website contact form. Please review our Terms of Use for detailed copyright and usage policies.
RISI Fingerprint Protection:
All RISI prompts and frameworks are secured and authenticated through our proprietary RISI Fingerprint technology.