In simple terms
A bear trap occurs when price falls through support and appears to confirm new weakness, but then recovers the level. Traders who sold or opened short positions on the breakdown may be left on the wrong side of the move.
It is not just an ordinary bounce: the “trap” involves a bearish signal that is invalidated. It is the opposite of a bull trap.
How to recognize it
The essential sequence is an observed level, a downside break, failure to continue, and a move back above the level. There is no universal distance or time threshold: both depend on the market, timeframe, and rule used to define the breakout.
The label describes what price did and who may have been trapped. A chart alone does not identify a participant's intent.
Limit
A bear trap is recognized only after the break has failed. It does not guarantee that price will keep rising, and it is not evidence of manipulation by itself.
Sources
- CMT Association, P&F Traps: Rules That Define Weakened Bulls & Bears — connects bear and bull traps with the failure of a previous signal or breakout.
- CME Group, Support and Resistance — explains levels and breaks while noting that support and resistance are zones, not guaranteed prices.