Difference between revisions of "Bull trap"

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<center>''«What a man does not understand, he does not possess.»''<br>(Wolfgang Goëthe)</center>
 
<center>''«What a man does not understand, he does not possess.»''<br>(Wolfgang Goëthe)</center>
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A bull trap is a false upward movement that temporarily pushes price out of a congestion area. Investors buy shares on the congestion breakout, but then price quickly reverts itself going back again under the level that was earlier violated.
 
A bull trap is a false upward movement that temporarily pushes price out of a congestion area. Investors buy shares on the congestion breakout, but then price quickly reverts itself going back again under the level that was earlier violated.
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[[Candlestick analysis]] provides quite a good help in qualifying the nature of price movements and it proves to be very useful in pinpointing bull traps.
 
[[Candlestick analysis]] provides quite a good help in qualifying the nature of price movements and it proves to be very useful in pinpointing bull traps.
  
[[Image:Bull_trap.jpg|center|800px]]  
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[[Image:Bull_trap.png|center|800px]]  
  
 
== See also:  ==
 
== See also:  ==

Latest revision as of 15:50, 11 December 2015

«What a man does not understand, he does not possess.»
(Wolfgang Goëthe)


A bull trap is a false upward movement that temporarily pushes price out of a congestion area. Investors buy shares on the congestion breakout, but then price quickly reverts itself going back again under the level that was earlier violated.

Candlestick analysis provides quite a good help in qualifying the nature of price movements and it proves to be very useful in pinpointing bull traps.

Bull trap.png

See also: