Bull & Bear Traps
Spot when one side is likely caught and forced to exit.
A bull trap forms when price breaks higher, attracts buyers, and then fails back below the breakout area. Those buyers are now caught and may need to sell to exit. A bear trap is the opposite: price breaks lower, attracts sellers, and then reclaims.
Traps are powerful because they create forced movement. When one side is wrong, exits can accelerate price in the opposite direction. The best traps usually happen at obvious levels where many traders expected a clean breakout.
To trade a trap, wait for failure and confirmation. Do not assume the breakout is false just because it looks extended. The trade becomes clearer when price re-enters the prior range and holds there, giving you a defined invalidation at the trap extreme.