Bull Trap A false signal indicating that a declining trend in a stock or index has reversed and is heading upwards when, in fact, the security will continue to decline. Investopedia Says: A bull trap often causes some investors to buy the stock, but because the stock continues to decline after the initial signal, those who bought in are "trapped" in a bad investment. Related Terms: Bear Market Bear Trap Capitulation Dead Cat Bounce Fakeout Falling Knife Indicator Speculation Take A Bath |