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Bear Trap
Bear Trap
Image 1 A false signal which indicates that the rising trend of a stock or index has reversed when in fact it has not.
Image 2 This can occur when short sellers see a bear market reverse its trend and becomes bullish, but they beleive the markets will go back to its declining ways. Therefore they short more stock, get trapped, and are forced to cover their position at higher prices.


Bear Market


Dead Cat Bounce

Short

Short Squeeze

Technical Analysis