Warning ALERT ‼️ ⚠️ 🚨 ⚠️ 🚨 ⚠️ ❗️
A bear trap is a deceptive technical signal indicating a shift from a rising market to a falling one. Believing the trend is turning bearish, traders may sell their holdings or open short positions in anticipation of declining prices.
When the price unexpectedly rises 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 traps, traders should rely on thorough analysis and not just initial signals, ensuring a more robust trading strategy.
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