I hear the terms like bull's trap of bear trap in some discussions or blogs. Please can you explain these terms as I have no idea as does that mean

General
2

Karthik has explained beautifully here http://zerodha.com/varsity/chapter/volumes/

So what does an increase in price, associated by decreasing volumes indicate?

  1. It means the price is increasing because of a small retail participation and not really influential buying. Hence you need to be cautious as this could be a possible bull trap.

So how would you infer a decline in price and a decline in volume?

  1. It means the price is decreasing because of small retail participation, and not really influential (read as smart money) selling. Hence you need to be cautions as this could be a possible bear trap.
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It is similar to mouse-trap.

4

thanks for sharing mate!