Bull Trap

A bull trap is a technical pattern that occurs when the performance of financial instruments incorrectly indicates a reversal of a dropping price trend. Bull Trap tricks investors into stopping their downward trend and those investors who fall into the bull trap will often buy at that time, believing the upward trend will continue and the instruments or shares they’re buying will rise in value. By then, traders who set the trap will enter the market again and sell at a high price. Once the trap is released, the false bull market will reverse and the value will flatten or even fall.