Bear trap

Bear trap,

Definition of Bear trap:

  1. A bear trap is a technical pattern that occurs when the performance of a stock, index, or other financial instrument incorrectly signals a reversal of a rising price trend. The trap is thus a false reversal of a declining price trend. Bear traps can tempt investors into taking long positions based on anticipation of price movements which do not end up taking place.

  2. A trap designed to catch bears; especially one constructed of a pair of metal jaws which snap shut around the leg.

  3. A situation in which a rising price trend misleadingly appears to have been reversed, or it is wrongly believed that shares will not fall any further.

  4. Anything likened to a trap for bears, typically with respect to its powerful or immovable grip; especially an inescapable predicament, a painful constraint or obstruction.

  5. A bear trap can prompt a market participant to expect a decline in the value of a financial instrument, prompting the execution of a short position on the asset. However, the value of the asset stays flat or rallies in this scenario and the participant is forced to incur a loss. A bullish trader may sell a declining asset in order to retain profits while a bearish trader may attempt to short that asset, with the intention of buying it back after the price has dropped to a certain level. If that downward trend never occurs or reverses after a brief period, the price reversal is identified as a bear trap.

  6. A type of bicycle pedal reminiscent in shape of an open bear trap.

  7. A situation in which investors who sold short near the bottom of a down cycle find themselves trapped when the market unexpectedly reverses. As longs begin to enter the market, the shorts start buying their way out of their losing positions, which further fuels the upward price momentum and panic buying for the remaining short-sellers who are still in the market. When the short covering is complete, the upward momentum slows and the market often resumes its downward trend. Compare to Bull Trap. See Whipsaw.

How to use Bear trap in a sentence?

  1. A bear trap is a false technical indication of a reversal from a down- to an up-market that can lure unsuspecting investors.
  2. A bear trap is often triggered by a decline that induces market participants to open short sales, which then lose value in a reversal when shorts are forced to cover.
  3. These can occur in all types of asset markets, including equities, futures, bonds, and currencies.

Meaning of Bear trap & Bear trap Definition

Bear Trap,

How Do You Define Bear Trap?

  1. Investing is a complex business and there are many points and disadvantages that can fall on those who do not know. The bear's net is one of them. A bear trap is a technical pattern that occurs when the performance of a stock, index or other financial instrument incorrectly reverses the upward trend.

    • The bear's net is a false technical indication of a reversal of a bottom line that could attract unauthorized investors.
    • It can appear in all types of asset markets, including stocks, futures, bonds and currencies.
    • Bear traps often start with a downturn that leads to short sales to market participants, after which participants lose value when they need to close a short position. Are

Literal Meanings of Bear Trap

Bear:

Meanings of Bear:
  1. Supports support weights.

  2. Perseverance (test or difficulty)

  3. Charging (someone or something)

  4. Birth (Male)

  5. Turn and continue in a certain direction.

  6. Large and heavy mammals that walk on the soles of the feet, with thick fur and very short tails. The bear belongs to the dog family, but most species are vegetarians.

  7. A tall, heavy, big man.

  8. A person who predicts a fall in the price of a stock or commodity, especially someone who sells the stock in the hope of repurchasing it later at a lower price.

Sentences of Bear
  1. Bees form large colonies and require long branches of trees to support the weight of the nest.

  2. Take the pain in peace

  3. He brought a tray full of glasses

  4. He has six daughters

  5. Turn left and follow the old road

  6. Recent DNA analysis has shown that the giant panda is most closely related and the red panda is most closely related to the raccoon.

  7. A heavy burden from a man

  8. Bear market

Synonyms of Bear

support, undergo, submit to, bring, prop up, bring forth, convey, keep up, transport, haul, bolster up, stand, be delivered of, suffer, carry, give birth to, put up with, incline, have, tolerate, produce, diverge, fork, move, spawn, experience

Trap:

Meanings of Trap:
  1. Dev devices or cages for catching and trapping animals usually allow entry, but do not exit or grasp any part of the body.

  2. A situation in which people expect a sudden attack.

  3. Containers or devices that are used to store certain items.

  4. A light two-wheeled vehicle pulled by a horse or a pony.

  5. A firing device to bring something down, such as a clay pigeon.

  6. Summary for incubation

  7. A person's mouth (used in language impressions)

  8. (In jazz musicians) drums or percussion instruments.

  9. One type of hip-hop music is usually characterized by dark heads and locks, including a large kick drum and a very fast hat.

  10. Where drugs are sold.

  11. The task of catching bullets.

  12. Catch the (animal) in the net.

  13. Use accessories (horse)

  14. Fine granular or similar black basaltic rock.

Sentences of Trap
  1. The squirrels destroy the young trees in spite of the snare

  2. We received false information from various agents and they got caught in the same trap

  3. Fuel filters and water collectors are sufficient in the fuel system

  4. She could see the pyramids through her window, but what she wanted to see was a picture of Tommy, the pony he was riding on his last voyage.

  5. We have to trap the clay pigeons.

  6. LP will offer its impressions on a variety of electronic voices, from dubstep to trap.

  7. He once dreamed he was trying to catch a fox, but he kept catching the Dalmas.

  8. The horses were wrapped in black velvet

Synonyms of Trap

cut off, hedge in, corner, lips, close in, hold captive, ambush, bait, maw, drive into a corner, hem in, mouth, shut in, net, decoy, lure, catch, jaws, pen, snare, confine, imprison, pin down