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Investments glossary

Bull Trap


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By recurrently changing the horizon, things can be perceived from another angle and the perspectives of life can be reoriented in a captivating way. If not, the squeaking wheel of our mind will suffer from lack of oil and our vision of the world gets rusted.

— Erik Pevernagie

A bull trap is a false signal, referring to a declining trend in a stock, index or other security that reverses after a convincing rally and breaks a prior support level. The move traps traders or investors that acted on the buy signal and generates losses on resulting long positions. A bull trap may also refer to a whipsaw pattern.

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