Dead Cat Bounce

bearish

Definition

A sharp collapse, a reflex bounce, then continuation lower.

After a crash, a small bounce fools hopeful buyers — then the slide resumes.

💡 Even a dropped cat toy bounces once — it still ends up on the floor.

down

Entry: On the bounce's failure (lower high + break of bounce support). · Stop: Above the bounce high. · Target: Retest of the crash low, often lower.

Named for false hope after bad-news gaps.

~70% resume lower · Medium reliability

1. Is the Dead Cat Bounce generally considered bullish, bearish, or neutral?

2. After a confirmed Dead Cat Bounce, the expected direction is usually:

3. Which is a common beginner mistake with the Dead Cat Bounce?

Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.