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Learn/Glossary/Dead Cat Bounce

Technical

Dead Cat Bounce

Quick Definition

A brief price recovery during a downtrend that fools people into thinking the bottom is in. Named because even a dead cat bounces if dropped from high enough. Brutal, but accurate.

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Related Terms

Bearish

Expecting prices to go down. A bearish trader thinks the market or asset will fall. Opposite of bullish.

Pullback

A temporary price decline during an uptrend. Smart traders wait for pullbacks to enter—buying dips rather than chasing highs.

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