Dead Cat Bounce

      A “Dead Cat Bounce” is a chart pattern that is drawn whenever a weak attempt at a price recover happens. As an asset is losing value, it briefly stop devaluing, pops up in price a little and draws a “half circle, returns to the price where it stopped and then continues its way down. 

     The name of “dead cat bounce” was chosen to describe this market pattern because of its characteristics. Whenever a dead cat is dropped from a height, its body will bounce off of the floor a little.



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