What is your explanation for a Bull Trap ?

[clover12]

How do you describe this trading signal??  Are they hard for you to spot or no?

[1714109543]

1714109543

[1714109543]

1714109543

[1714109543]

1714109543

[harizen]

How do you describe this trading signal??  Are they hard for you to spot or no?

Let's put it this way: It will put some thinking on a people that the trend will now goes upwards disregarding other "factors" why we should believed on that. That's the signal where people have to take caution of and not just diving into the trend without any knowledge.

Are they hard to spot? Honestly for an experienced trader, they are used to this kind of signal. But how about those newbies ones? How can they deal on that? First analyzed the situation and put some study if taking the risks will be worth it. Second, considering checking other references. Not all coins have different behaviour. Third, be serious.

What matter here is, we are not just throwing money as easy as it is thinking we will have a good profit later on. More advices to come while the discussion is moving forward...

[richcorner100]

The crypto market bull trap if the price in the bottomed and already side away for long times, if we see the chart like this dont left the market but buy it more and wait patiently because possible we will make huge profit. Low price is mean low the capitalization that make more easy to push the price.

[butka]

The definition from Investopedia:

A bull trap is 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.

Source: https://www.investopedia.com/terms/b/bulltrap.asp

Yes, these traps are hard to spot while trading. They are easily identified after the fact, usually by the long wick above the resistance line as in the image above.

[mrdeposit]

There are more than ten thousand digital currencies in the market and e.g. 1000 of them is better for making money. In your opinion can we follow all of them everyday? So you are informed about potential innovations in signal groups and you are not tired anymore. 

[jakezyrus]

Bull trap to me is when a price is if a coin is in dip and suddenly it increases in a slow manner . now if every one if taking advantage of buying that certain coin because they think that the value can still increase ,  that was also the time that the value can dump unexpectedly  .

They say and i say that it was a bull trap but i can also say that there are no reall bull traps because what happen is a normal phenomenon .  the price dump because many hodlers were also selling their coins for profit .

[clover12]

You trying to say bull trap is all hocus pocus?  The math actually all adds right up then?  There is no smoke and mirrors and no whales manipulating?