The Bull Trap: How Breakout Buyers Get Harvested

A bull trap is a price move above resistance that attracts breakout buyers — and then reverses, leaving those buyers with losses.

The mechanics:

1. Price approaches resistance.
2. Price pushes above triggering breakout buys.
3. Volume thin.
4. Price reverses below resistance.
5. Breakout buyers trapped.

Genuine vs trap: volume confirmation, candle structure, options OI, broader context.

The most obvious breakout is often the most engineered one.

Bull trap, Breakout failure, Liquidity sweep, Confirmation bias

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