What is a bull trap in trading and how to handle it

"Bull trap" or "bullish reversal" means a change in the trend at the highs of a particular trading instrument, be it Forex trading, financial derivatives, etc. Every trader can encounter a situation on the financial market when quotes overcome the resistance level, after which active growth continues for some time. However, soon the instrument reverses and moves in the opposite direction, knocking out stop losses. This false breakout, where investors jump mistakenly to open buy positions, is called a bull trap. The article examines in detail the reasons for the emergence of the pattern, as well as options for how... Read full author’s opinion and review in blog of #LiteFinance