bull trap
A fake rally that lures buyers in right before a sharp drop.
Definitions
A deceptive upward move that tempts buyers into thinking a rally has begun, only for the price to reverse and fall, trapping them in losses.
bull trap In A Sentence
Origin & Usage
Established technical-analysis term widely used across trading and WSB communities.
People Also Ask
What is a bull trap?
It's a deceptive upward price move that lures buyers into thinking a real rally has started, only for the price to reverse and fall, trapping those buyers in losses.
How do you spot a bull trap?
Traders often look for a breakout that quickly fails on weak volume or reverses back below the level it broke through. It's easiest to confirm only in hindsight, which is what makes them dangerous.
What's the opposite of a bull trap?
A 'bear trap,' which is a deceptive downward move that lures in sellers or short sellers before the price rebounds against them.
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