Bear Trap β The False Breakdown Setup π»πͺ€
π A Bear Trap is the opposite of a Bull Trap β when price breaks below support, triggering panic selling, but then reverses sharply upward.
β
Key Signs:
Breakdown below strong support.
Quick recovery within 1β2 sessions closing above support.
Volume surge during breakdown & recovery.
β
Meaning: Retail traders panic-sell, while smart money accumulates quietly.
π Example: Stock breaks βΉ620 support β hits βΉ605 β next candle rebounds and closes βΉ625 β Bear Trap β reversal confirmed.
π§ Tip: If RSI shows divergence and breakdown fails, reversal potential is high.
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