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bull trap

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Financial Dictionary

Bull Trap

A false signal indicating that a declining trend in a stock or index has reversed and heading upwards when, in fact, the security will continue to decline.

Investopedia Commentary

A bull trap often causes some investors to buy the stock, but because the stock continues to decline after the initial signal, those who bought in are "trapped" in a bad investment.

Related Links

Digging Deeper Into Bull And Bear Markets

See also: Bear Market, Bear Trap, Capitulation, Dead Cat Bounce, Falling Knife, Indicator, Speculation, Take a Bath

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