A bull trap denotes a reversal that forces market participants on the wrong side of price action to exit positions with unexpected losses. Bull traps occur when buyers fail to support a rally above a breakout level. Traders and investors can lower the frequency of bull traps by seeking confirmation following a breakout through technical indicators and/or pattern divergences.
What is a Pullback? A pullback is a temporary reversal in the price action of an asset or security. The duration of a pullback is usually only a few consecutive sessions. A longer pause before the uptrend resumes is generally referred to as consolidation. Pullbacks can provide an entry point for traders looking to enter a position when other technical indicators remain bullish.