June 21, 2014
Moses Stock Corner – Thought and Notes of Trading
Bull Trap
What is Bull Trap? Definition of Bull Trap: as the name, bull is being trapped. It means a false signal of a rally of a stock or index, the truth is the security has reversed. Those whom believe the trend and join the rally is being trapped when the trend reverses and confirms the decline. In other words, a stock or index instead of heading north or upwards but in actual fact it turns around and heading south; the security is declining and travels south.
You can find some example on the enclosed NASDAQ daily chart. See chart for details.
Bear Trap
Bear Trap is just the reverse.
NASDAQ Composite Daily Chart Daily Chart
Stock Benchmark, NASDAQ Daily Chart. June 18, 2014.
This is another example of up trend. Price action is moving from the left bottom of the chart toward the top right of the chart.
NASDAQ Composite Daily Chart Daily Chart
Stock Benchmark, NASDAQ Daily Chart. June 18, 2014.
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An example of fail Head and Shoulders.
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Moses
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