Bull trap

In stock market trading, a bull trap is an inaccurate signal that shows a decreasing trend in a stock or index has reversed and is now heading upwards, when in fact, the security will continue to decline.

It is seen as a trap because the bullish investor purchases the stock, thinking it will increase in value, but is trapped with a poor performing stock whose value is still falling.

See also

  • iconBusiness and economics portal
  • Boom and bust
  • Dead cat bounce
  • Economic bubble
  • Market trend
  • Speculation
  • Stock market bubble

References

Look up bull trap in Wiktionary, the free dictionary.
  • Setting the Bull Trap (investorinsight.com)
  • Don’t Fight a Bull Trap (stocks-simplified.com)


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