Bear Trap

What Does Bear Trap Mean?
A false signal that the rising trend of a stock or index has reversed when it has not.

Investopedia explains Bear Trap
This can occur during a bear market reversal when short sellers believe the markets will sink back to its declining ways. If the market continues to rise, the short sellers get trapped and are forced to cover their positions at higher prices.

Related Terms

Bear Market
Bear Raid
Dead Cat Bounce
Fakeout
Short
Short Covering
Short Interest
Short Selling
Short Squeeze
Technical Analysis
More Related Terms

Related Links

Short Selling Tutorial - Want to profit on declining stocks? This trading strategy does just that.
The Short And Distort: Stock Manipulation In A Bear Market - High-quality stock reports needn't be confused with stock manipulators' dramatic claims.
Adapt To A Bear Market - Learn how your portfolio should evolve to suit bear market conditions.

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