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Bull Trap

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Bull Trap
An indication that a security's declining price has reversed itself, causing some investors to buy it. Unfortunately, the reversal is short-lived or non-existent and the security continues to decline. Investors who have bought after a bull trap indication often have a difficult time unloading their securities because they cannot find buyers. See also: Bear trap, Bear market.


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In hindsight, the 30% increase in market averages may represent the classic bull trap.
New traders will start with basic ones like the Bull Trap trading strategy, which plays on market momentum and requires some fast decision skills.
50 an occasion to use this supposed bull trap for another short position, analysts at the bank wrote in a research note yesterday.
 
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