Bull Trap
A false breakout above resistance that lures buyers in, then reverses and leaves them stuck in losing trades.
In plain English
A false breakout above resistance that lures buyers in, then reverses and leaves them stuck in losing trades.
In a bull trap, price pokes above a level everyone is watching. Buyers rush in, sure a new rally has begun. Then it rolls over and sinks back below, and those buyers are left holding losses, often adding fuel as they sell to escape.
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