Bull Trap Trading Strategy (Rules, Backtest, Performance)

In this article, we will look at one of these traps; why does it happen? Who is responsible for them? Why does it concern you, and can you outsmart it? We show you how you can profit from a bull trap trading strategy.

Some traps are set for you in the market. Shocking, but it is true. Not all losses are a random hand of the market’s probability model, and some are carefully crafted to take your money away.

You might find it challenging to wrap your head around why such a regulated industry as this traps traders like us. If you have been trading for a while, you’d have fallen prey to these traps repeatedly, and knowing much more about them is critical to your investment career.

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What is a Bull Trap in Trading?

There’s a famous phrase thrown around amidst technical analysis folks: “the trend is