bull trap


A sign which supposedly indicates that a security is reversing its path, and is starting to rise instead of decline, but in actuality the security continues to decline after this signal is seen. It is seen as a trap because some people will see this signal and purchase the stock because they believe they will benefit from this increase in value, but they are trapped with a poor performing stock when they find out that the stock is still falling.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
bull straddle Bull/Bear Ratio