🌟🌟🌟A bearish gap appears during a strong uptrend. What does it indicate? The correct answer is B. It is a shakeout to scare out weak hands. Explanation: Why Bears Fell into Their Own Trap A bearish gap during a strong uptrend is most often interpreted as a shakeout. It is also known as a bear trap or an exhaustion gap. The sudden drop in price serves to scare out less confident investors also known as "weak hands" who then sell their positions, often right before the ordinary uptrend resumes. This is a temporary disruption in the upward momentum. It is not a definitive end to the trend itself. Why the other answers are incorrect : A. A guaranteed trend reversal: Technical analysis does not offer guarantees. While a gap can signal a reversal under sp
TA Education: Read the Market, Trade Smarter, Get Rewarded!
This series aims to break down commonly used technical indicators simply and intuitively, helping investors improve their ability to interpret market trends, momentum, and risk. Whether you're a beginner or an experienced trader, you’ll quickly grasp the core logic behind each indicator, avoid common misuses, and strengthen your practical analysis skills. Share your technical analysis insights to win $5 stock vouchers and tiger coins!
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