Glossary › trap
Trading glossary · structure
trap
A move that tricks traders into jumping in, then turns hard against them.
The fuller meaning
A false move that lures traders in and reverses, as in bull and bear traps around breakouts. Trapped traders must exit together, which can push price hard the other way; waiting for a close, follow-through or a retest reduces the risk of being trapped.
trap, also called trapped traders, trapped, bull trap, bear trap.
Related words
above-average volume · bounce · break of structure · breakaway gap · breakdown · breakout · broken level · channel · choppy market · common gap