What Is a Bull Trap?
A bull trap denotes a reversal that forces market participants on the wrong side of price action to exit positions with unexpected losses.
Bull traps occur when buyers fail to support a rally above a breakout level.
Traders and investors can lower the frequency of bull traps by seeking confirmation following a breakout through technical indicators and/or pattern divergences.
What is a Pullback?
A pullback is a temporary reversal in the price action of an asset or security.
The duration of a pullback is usually only a few consecutive sessions. A longer pause before the uptrend resumes is generally referred to as consolidation.
Pullbacks can provide an entry point for traders looking to enter a position when other technical indicators remain bullish.
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A bull trap denotes a reversal that forces market participants on the wrong side of price action to exit positions with unexpected losses.
Bull traps occur when buyers fail to support a rally above a breakout level.
Traders and investors can lower the frequency of bull traps by seeking confirmation following a breakout through technical indicators and/or pattern divergences.
What is a Pullback?
A pullback is a temporary reversal in the price action of an asset or security.
The duration of a pullback is usually only a few consecutive sessions. A longer pause before the uptrend resumes is generally referred to as consolidation.
Pullbacks can provide an entry point for traders looking to enter a position when other technical indicators remain bullish.
This may help you decide better!
Related Articles:
https://www.investopedia.com/terms/b/bulltrap.asp
https://www.investopedia.com/terms/p/pullback.asp
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