Bull Trap

 

For Education Only

 

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A Bull Trap is an inaccurate financial signal of a decreasing trend in a stock or index that has reversed and heads upwards, when the security will continue to decline.  The bullish investor purchases the stock or index to increase in value, but is trapped because the value will decrease.

 

Pictorial Representation of a Bull Trap

 

See the source image

 

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