Warning ALERT ‼️ ⚠️ 🚨

A bear trap is a misleading technical signal that suggests a shift from a rising market to a falling one. Traders who believe the trend is turning bearish may sell their holdings or take short positions, expecting prices to drop.

However, when the price unexpectedly rises instead of continuing to fall, these traders can be caught off guard. They may incur losses as they scramble to close their short positions at higher prices.

Understanding bear traps is essential. To avoid falling into such traps, traders should rely on comprehensive analysis rather than just initial signals, ensuring a more resilient trading strategy.

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