bull trap

[BTCWALK]

It is a false signal in technical analysis and trading.
This trap occurs when in the downward trend of a stock, index or digital currency, the price movement changes for a while and convinces market participants that the upward trend has begun; But the trend is reversing and declining, and the previous level of support is declining.
The move traps traders and investors and hurts people who have taken long positions.
Cattle traps may also be referred to as "whip patterns."
The opposite of a bull trap is called a bear trap, in which case prices rise for a while and then return to the main upward trend.

What is a bull trap and what does it mean?

As mentioned, a bull trap occurs when a trader or investor buys a stock or pair that has broken a resistance level, assuming that the downward trend has ended. This is very common in the usual technical-oriented strategies; But unlike many cases where the analysis is correct, in the bull trap, the price changes direction again and continues the previous downward trend. In this way, traders fall into the trap of buying property or taking a long position.

Traders and investors should avoid  traps by receiving approvals from the share or asset chart. For example, a trader must pay attention to the volume of exchanges to ensure the start of the uptrend, this volume must be greater than the average volume of previous candelabra. The use of candlesticks can also help in this matter, to ensure the ascending process, you should look for bull dung. When the resistance is broken, but the volume of exchanges is not large enough, or inconspicuous candle patterns such as the "Doge Star" are seen in the diagram, there is a possibility of a bull trap.

What to do when dealing with a bull trap?

The best way to deal with bull traps is to recognize the warning signs before they happen. As mentioned, reducing trading volume is one of these symptoms.
In such a situation where there is a possibility of a bull trap the trader must withdraw from the transaction as soon as possible.
In such cases, adjusting the loss limit in the exchange can be practical, especially when the market can make emotional decisions.

An example of a bull trap

In this example, during a sharp sell-off, the stock price falls sharply and sets a new annual price floor.
The price then recovers quickly and pushes up the resistance line of the trend line.
Many traders and investors buy assets with the prediction that the resistance is gone.
 But the price immediately fell sharply and continued to decline.
Buyers who have taken a long position in the previous two candlesticks will suffer heavy losses unless they have implemented risk management practices.

[batang_bitcoin]

It's always practical to adjust whenever we are in bull traps or bear traps. In trading, if you think that you can't cope up with your losses anymore better to cut loss and that's a sign of a trader that accepts fault and later will recover through performing a better trade.
Regardless of the signs bull traps or bear traps, it's always the best to remain in your favored position. Like me, always a hodler. 

[judaspriest]

weekend is the day where Bull Trap and Bear Trap occur, look yesterday, the price of Bitcoin Dump to $ 8900 and suddenly rises to $ 9200 now,
obviously it's a bear trap, and maybe Bull trap coming this week, you must be carefully

[asyakashi]

weekend is the day where Bull Trap and Bear Trap occur, look yesterday, the price of Bitcoin Dump to $ 8900 and suddenly rises to $ 9200 now,
obviously it's a bear trap, and maybe Bull trap coming this week, you must be carefully

the most important thing is always to take advantage of any situation, bitcoin trading for me is gambling and ignores analysis about the market.
the increase is influenced by several factors and is difficult to predict.

[Ridwan Fauzi]

I've been seen several times a bull trap in the market. Especially when I was trading and there is a huge increase and after that a huge decrease coming.

Technically bull trap or bear trap can't be understood or can't be predicted in your analyst. You can simply use trend line to know the bull trap, when bull trap comes the trend line strategy will be hard to be applied.

Also, you can use fundamental factor. If there is a huge increase on the coin's price but there is no good information then you can expect that as a bull trap. Usually, when the price's coin increase dramatically you will find there is a goof news comes.

[Slash61]

I've been seen several times a bull trap in the market. Especially when I was trading and there is a huge increase and after that a huge decrease coming.

Technically bull trap or bear trap can't be understood or can't be predicted in your analyst. You can simply use trend line to know the bull trap, when bull trap comes the trend line strategy will be hard to be applied.

Also, you can use fundamental factor. If there is a huge increase on the coin's price but there is no good information then you can expect that as a bull trap. Usually, when the price's coin increase dramatically you will find there is a goof news comes.

I guess it's only you who are trapped in market conditions. such pumps are not for trade for those who do not have good skills. those who are experienced in trading sometimes even avoid the bull situation to trade altcoin. they are better at monitoring their investment assets than trading. try to be careful about your trade, and understand the state of the market.

[ethereumhunter]

I guess it's only you who are trapped in market conditions. such pumps are not for trade for those who do not have good skills. those who are experienced in trading sometimes even avoid the bull situation to trade altcoin. they are better at monitoring their investment assets than trading. try to be careful about your trade, and understand the state of the market.

Because the pump will tempt trader to join and try to make a big profit in a short time if they realize that is very difficult to make that profit, they will not follow the pump, but if they join with the pump, they will leave it after they make a profit. But some people will still chase the other profit because they are too greedy to make another profit. We don't have to be like them if we care with our money because the pump will only happen in a short time, and after that, the price will be back to the low price

[Bezobraznike]

weekend is the day where Bull Trap and Bear Trap occur, look yesterday, the price of Bitcoin Dump to $ 8900 and suddenly rises to $ 9200 now,
obviously it's a bear trap, and maybe Bull trap coming this week, you must be carefully

the most important thing is always to take advantage of any situation, bitcoin trading for me is gambling and ignores analysis about the market.
the increase is influenced by several factors and is difficult to predict.

   Asyakashi not everyone is able to take advantage of bull trap situation. It's why not everyone is making profit from that,
while some earn others lose, it's a traders game.
   Last weekend we had bear trap situation as Judaspriest said. And I think we have bear traps all the time, as bull traps, it's
a common thing in crypto-market.
   It's why this topic is good, people should learn more about this terms and what they mean. If someone thinks that they
are good for making profit he is free to try it.

[Mahanton]

weekend is the day where Bull Trap and Bear Trap occur, look yesterday, the price of Bitcoin Dump to $ 8900 and suddenly rises to $ 9200 now,
obviously it's a bear trap, and maybe Bull trap coming this week, you must be carefully

the most important thing is always to take advantage of any situation, bitcoin trading for me is gambling and ignores analysis about the market.
the increase is influenced by several factors and is difficult to predict.

   Asyakashi not everyone is able to take advantage of bull trap situation. It's why not everyone is making profit from that,
while some earn others lose, it's a traders game.
   Last weekend we had bear trap situation as Judaspriest said. And I think we have bear traps all the time, as bull traps, it's
a common thing in crypto-market.
   It's why this topic is good, people should learn more about this terms and what they mean. If someone thinks that they
are good for making profit he is free to try it.

Of course, trading does involve buy and sell and if theres someone who do gain then theres other that had lose out their money.When it comes on what kind of traps it is neither a bull or on bear then its really hard to
predict on on what would be the next move that might happen.We cant say a trap unless if it do fail to break a certain resistance or support and also there are instances where detecting a trend is already done before
you do realize that you are already on neither of those fake pumps or dumps.This is where experience do matter on each trader because the next action or decision would be taken is basing up into their experience.

[Psynthax]

weekend is the day where Bull Trap and Bear Trap occur, look yesterday, the price of Bitcoin Dump to $ 8900 and suddenly rises to $ 9200 now,
obviously it's a bear trap, and maybe Bull trap coming this week, you must be carefully

It can also be considered as a small correction. In my opinion if everything still remains the same. I didn't think if that was a bulltrap consider it was not reaching another higher point and then dumped it again instantly. The small correction and stabilization are always happening right now.