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Nikita (SEBI RA)

21st Oct Β· SEBI Registration INH000016843

Bear Trap – The False Breakdown Setup 🐻πŸͺ€

πŸ“Š A Bear Trap is the opposite of a Bull Trap β€” when price breaks below support, triggering panic selling, but then reverses sharply upward. βœ… Key Signs: Breakdown below strong support. Quick recovery within 1–2 sessions closing above support. Volume surge during breakdown & recovery. βœ… Meaning: Retail traders panic-sell, while smart money accumulates quietly. πŸ“Œ Example: Stock breaks β‚Ή620 support β†’ hits β‚Ή605 β†’ next candle rebounds and closes β‚Ή625 β†’ Bear Trap β†’ reversal confirmed. 🧠 Tip: If RSI shows divergence and breakdown fails, reversal potential is high.

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