What is a dead cat bounce?

A dead cat bounce refers to a brief recovery in the price of an asset during a downtrend, after which the asset resumes its downward trajectory.

How can I identify a dead cat bounce?

You can identify a dead cat bounce by looking for a sudden price increase after a prolonged downtrend, followed by a return to the previous downtrend. It is often accompanied by low volume and lack of sustainable momentum.

Is the dead cat bounce a reliable indicator of a market reversal?

No, a dead cat bounce is generally not a reliable indicator of a market reversal. It often represents a short-term correction rather than a fundamental change in trend, so further analysis is required to confirm a reversal.

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What is DEAD CAT BOUNCE?

DEBT INSTRUMENT

Debt instrument is a paper or electronic obligation that enables the issuing party to raise funds by promising to repay a lender.

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