bulltraporbreakout

Bull Traps and Bear Traps are false market movements that lead traders to enter positions on the wrong side, resulting in quick losses when the price reverses sharply.
They usually occur at significant psychological levels, like support and resistance, or at the peaks of chart patterns (like the wedges we saw earlier).
1. Bull Trap
This happens when the price breaks through a resistance or a previous high, signaling that the bullish trend will continue. Buyers (bulls) enter the market, but the price loses momentum and quickly drops below the breakout level.