Today, Bull trap is a topic that generates great interest and participation in society. Since its emergence, Bull trap has been the subject of debate and discussion in different areas, from politics to science. Over time, Bull trap has evolved and adapted to the changes of the modern world, impacting people's daily lives. In this article, we will explore in depth the different aspects and perspectives related to Bull trap, analyzing its influence on society and its relevance in the current context.
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.