Bear Trap

The bear trap is a four-column bullish pattern.

1. Double bottom sell pattern
2. Double top buy pattern

This pattern is defined as a bear trap pattern in which the double bottom sell pattern (bearish breakout pattern) is immediately followed by the reverse double top buy pattern (bullish breakout pattern).

This formation shows that the bears have failed. Not only has the column turned bullish but it has also resulted in a bullish breakout, trapping the bears in the trade.

It is a traditional P&F pattern.

Click here to learn more about the pattern.

This pattern can be plotted on the chart by adding it from the Add study menu in TradePoint & Patterns in RZone. The pattern is also available in the System Builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.