This article on How To Avoid A Bull Trap is the opinion of Optimus Futures.
Have you ever bought a futures contract in hopes of a breakout that never materialized? And instead, prices soon start to drop right in front of your face.
But it looked so good. Why did it just all of a sudden break down?
There are many possible reasons, which we’ll explore later on. But we just described something called a bull trap, which is the complete oppositive of the bear trap.
Bull traps happen in bull and bear markets.
And understanding the psychology behind them can serve you well as a trader.
For example, index futures prices have been beaten down in 2022. Traders