A bear trap is a price move below support that attracts panic shorts — and then reverses violently upward, squeezing those positions.
Mechanics: Brief push below support triggers stops and shorts, then reversal + short squeeze.
Identifying: single candle on low volume, high put OI, momentum divergence, rapid reversal candle.
Wait for sustained confirmation.
Bear trap, Panic shorting, Short squeeze, Reversal
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