How often did you experience a situation where a trade looked so obvious but then immediately reversed on you and you had to realize that you were, once again, entering at a very wrrong spot? A bull trap occurs when traders take a long position and then have price reverse and move lower very sharply. The long-positioned trader is trapped and this pattern often follows a very similar rhythm of luring traders into “obvious” long trades, followed by a sudden move against the traders. Bull traps often happen around previous highs where it looks as if the price is continuing the rally. Especially amateur traders often ... (full story)