{"id":3855,"date":"2023-03-03T11:30:22","date_gmt":"2023-03-03T11:30:22","guid":{"rendered":"https:\/\/fisdomdevel.wpengine.com\/glossary\/bull-trap\/"},"modified":"2023-03-03T11:30:22","modified_gmt":"2023-03-03T11:30:22","slug":"bull-trap","status":"publish","type":"post","link":"https:\/\/www.fisdom.com\/glossary\/bull-trap\/","title":{"rendered":"Bull Trap"},"content":{"rendered":"<p>\nBull trap is defined as a false market signal which \u2018traps\u2019 a trader or investor. A Bull Trap is essentially a situation where the price of a security rises above a certain level, attracting traders or investors. They enter at that price point, considering it to be a breakout level. However, the upward price rise is shortlived and thus it \u2018traps\u2019 these traders\/investors who bought the shares considering them to be in bull territory. They thus, get stuck or \u2018trapped\u2019 because the price then declines at a rapid pace or they are forced to exit at a loss.<\/p>\n<h2>Important points to note about a Bull Trap<\/h2>\n<p>A bull trap can be avoided keeping these points in mind:<br \/>\na. Bull traps are visible in downward markets when there is a sudden rise in prices. This is considered as a possible start of an uptrend by traders, who take this as a price reversal signal. Their entry at this point soon turns out to be a trap as prices soon reverse.<br \/>\nb. Bull traps can also happen in a flat market or at the end of an uptrend.<br \/>\nNot jumping with a buy action at the first sign of reversal may be a good way to prevent getting into a Bull Trap.<\/p>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>Bull trap is defined as a false market signal which \u2018traps\u2019 a trader or investor. A Bull Trap is essentially a situation where the price of a security rises above a certain level, attracting traders or investors. They enter at that price point, considering it to be a breakout level. However, the upward price rise [&hellip;]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[11],"tags":[],"class_list":["post-3855","post","type-post","status-publish","format-standard","hentry","category-stocks"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/3855","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=3855"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/3855\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=3855"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=3855"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=3855"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}