Bull Trap

What Does Bull Trap Mean?
A false signal indicating that a declining trend in a stock or index has reversed and is heading upwards when, in fact, the security will continue to decline.

Investopedia explains Bull Trap
A bull trap often causes some investors to buy the stock, but because the stock continues to decline after the initial signal, those who bought in are "trapped" in a bad investment.

Related Terms

Bear Market
Bear Trap
Capitulation
Dead Cat Bounce
Fakeout
Falling Knife
Indicator
Minsky Moment
Speculation
Take A Bath
More Related Terms

Related Links

Digging Deeper Into Bull And Bear Markets - Discover why it's important to know the characteristics of the two types of market conditions.
Stock Basics Tutorial - If you're new to the stock market and want the basics, this is the tutorial for you!
The Dead Cat Bounce: A Bear In Bull's Clothing? - Make sure you know the difference between a change in market outlook and short-term recovery.
Where did the bull and bear market get their names?
Are we in a bull market or a bear market?

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