Exchange Currency

bull trap

A sign which supposedly indicates that a security is reversing its path, and is starting to rise instead of decline, but in actuality the security continues to decline after this signal is seen. It is seen as a trap because some people will see this signal and purchase the stock because they believe they will benefit from this increase in value, but they are trapped with a poor performing stock when they find out that the stock is still falling.

Related information about bull trap:
  1. Bull Trap Definition | Investopedia
    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.
     
  2. Bull trap - Wikipedia, the free encyclopedia
    In economics, a Bull trap is an inaccurate signal that shows a decreasing trend in a stock or index has reversed and is heading upwards when, in fact, the ...
     
  3. Bull Market Or Bull Trap? - Seeking Alpha
    Jun 22, 2012 ... Asset allocation strategies based on intermediate trends should be positioned for a Bull Trap - not a Bull Market. Allocations to domestic ...
     
  4. Bull Trap – Chart Reversal Pattern
    Jun 24, 2011 ... A bull trap occurs when longs take a position when a stock is breaking out, only to have the stock reverse and sell off.
     
  5. Market rally is 'major bull trap,' analyst says - The Tell - MarketWatch
    Jun 12, 2012 ... Stock investors are whistling past the euro-zone graveyard says Christopher Vecchio, currency analyst at DailyFX.
     
  6. B - Glossary - ChartSchool - StockCharts.com
    Bull Trap: A situation that occurs when prices break above a significant level and generate a ... A bull trap is another form of whipsaw and relates to the upthrust.
     
  7. Incredible Charts: Point & Figure - Bull and Bear Traps
    Ford Motor Co. displays a bull trap that took more than a year to complete: ... Bull trap: Price rallies to a marginal new high but then retreats below the new ...
     
  8. Is the bond market a bull trap?- MSN Money
    Nov 16, 2012 ... Anthony M. Cherniawski and Janice Dorn In August, we published at Minyanville an article entitled The Bernanke (Ka)put. In it, we posited that ...