WARNING ALERT ‼️ ⚠️ 🚨 ⚠️ 🚨 ⚠️ ❗️
A bear trap is a misleading technical signal that indicates a change from a bull market to a bear market. Believing that the trend is turning bearish, traders may sell their holdings or open short positions in anticipation of falling prices.
When the price rises unexpectedly instead of falling further, these traders are caught off guard. They often face losses as they rush to close their short positions at higher prices.
Understanding bear traps is crucial. To avoid such pitfalls, traders must rely on thorough analysis and not just initial signals, ensuring a more robust trading strategy.