Tag: market psychology
-
What is a Bear Trap in Trading — How to Avoid It?
Bear Trap in Trading, market movements can often be unpredictable. One of the most deceptive patterns that traders should be cautious about is the bear trap. A bear trap occurs when the market appears to be heading into a downtrend, leading traders to enter short positions, only for the price to reverse and rise sharply.…
-
What is Price Action Trading? — A Complete Trading Guide
What is Price Action Trading? Price action trading is a popular strategy used by traders to make decisions based on the movement of prices over time. It relies solely on historical price data, such as highs, lows, and closing prices, rather than relying on external indicators or news events. The primary goal is to identify…
-
What is a Bull Trap & How to Avoid It? — A Complete Guide
What is a Bull Trap? In the world of trading, a bull trap is a deceptive signal that misleads traders into thinking a market rally has begun. In reality, the rally is short-lived, and the market quickly reverses, causing significant losses for those who entered too early. A bull trap occurs when a price rise…