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A bull trap is a four-column bearish pattern.
This pattern is defined as a bull trap pattern in which the double top buy pattern (bullish breakout pattern) is immediately followed by the reverse double bottom sell pattern (bearish breakout pattern).
This formation shows that the bulls have failed. Not only has the column turned bearish but it has also resulted in a bearish breakout immediately after the bullish breakout. This traps the bears in the trade.
It is a traditional P&F pattern.
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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.