Main Page

A Wealth of Knowledge

FOREXWIKI

A Wealth of Knowledge



News · Economic calendar · Random concept

Bear trap

Bear trap occurs when the market breaks below a significant support giving the illusion that the prices will drop further, Generating a sell signal for break out traders, who will then learn that the market was only testing the support and has not really broke it. It is called a "bear trap" because it gives of the impression that the market has broke the support but only to find that it was only testing it, because it then reverses.

Want to contribute?

Create account · Log in · Read help



Questions?

Contact us