What is a bear trap? Bear trap stocks are ones that have already fallen a lot in price and traders continue to sell it short believing it will continue to fall and make lower and lower prices. These bear trap stocks can create extreme bearishness luring in more and more short sellers after it has […]
A bear trap is a false technical bearish signal for price to continue falling in a down swing on a chart to new lower prices that lures in short sellers. Bear traps catch short sellers chasing a price lower which reverses causing shorts to cover and leads to more buying and momentum to the upside.
What is a Bear Trap? (Short Squeeze) Read More »
