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Investments glossary

Bear Trap

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Quotes of the day:

A homosexual who is honest with himself knows that he and his partner will never become parents together, dRINK, DRUGS AND SEX.

— Paolo Gentili

A bear trap is a technical pattern that occurs when the performance of a stock, index, or other financial instrument incorrectly signals a reversal of a rising price trend. The trap is thus a false reversal of a declining price trend. Bear traps can tempt investors into taking long positions based on anticipation of price movements which do not end up taking place.


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