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Bull trap

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This is an old revision of this page, as edited by 37.211.15.246 (talk) at 08:08, 4 September 2017 (Stock market trading and economics are different. This is about trading, not economics). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

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.

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