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Dead Cat Bounce

Stock market  Day-trader  Dead money

Dead Cat Bounce
What It Is:
A dead cat bounce refers to a temporary recovery in a stock price or a temporary market rally after a significant downward trend.


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Dead cat bounce
Definition ...

Dead Cat Bounce
The first part of the dead cat bounce pattern consists of a massive drop in prices (the average being roughly 31%), and is often accompanied by a large gap down (Bulkowski, 2005).

Dead Cat Bounce
A temporary recovery from a prolonged decline or bear market, after which the market continues to fall.
Dead Hand Provision ...

Dead cat bounce
A small upmove in a bear market.
Deal flow
In investment banking, the rate at which new deals are referred to a brokerage firm.

dead cat bounce
The dead cat bounce is a very quick pattern. It occurs after a giant down day in a stock caused by a news event.
bump and run
A bump and run chart pattern is a reversal pattern. It occurs after a large uptrend.

Dead Cat Bounce
Debt /Equity
The debt to equity ratio measures what proportion of equity and debt a company is using to raise money, and is calculated as follows: ...

Dead Cat Bounce: A term used for a sharp rise in stock prices after a severe decline, which is often the result of short-sellers covering their positions at a profit.

Dead Cat Bounce
A Dead Cat Bounce describes a situation where price activity sees a modest upward move after a long downtrend. The bounce is limited, however, as the downtrend ultimately reasserts itself later.
Days To Cover ...

Dead cat bounce
List of market opening times
List of recessions
List of stock exchanges
List of stock market indices
Modeling and analysis of financial markets
NASDAQ-100
Securities regulation in the United States
Slippage (finance) ...

Dead Cat Bounce: A rebound in a market that sees prices recover and come back up somewhat.
Debit Spread: An option spread in which the premium of the bought option is greater than the premium of the one sold.

The first day is a long white candle which supports the trend. The second day opens above the high of the white day but closes below the midpoint of the range of the first day. Dead Cat Bounce - A rally within a bear market.

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A trend-follower may be inclined to say ‘dead cat bounce’ (and a temporary one, to be clear). And, he/she may well be right.

The US dollar had a big rally from July until just a few weeks ago as the dollar started an avalanche slide putting in a small dead cat bounce last week.

Such breakout might actually be a dead cat bounce. RangeBoundSelling will not be detected in a Strong market state because in a strong market, selling usually invite bottom dip buyers.

As the security moves lower, traders use each dead cat bounce as an opportunity to add to their short positions. Over time, as the number of traders short continues to increase, there develops an imbalance of supply and demand.

Many patterns are covered, including the inverted dead cat bounce, busted chart patterns and event patterns (e.g., earnings releases). The author pinpoints what chart patterns work and don’t work based on extensive research over decades.

So here's a skepticism to ponder: how can you tell the difference between a dead cat bounce and a beat down business clawing its way back?
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We expect the right shoulder to top out in the ambush zone or the blue line which lines up with left shoulder. After we breach the neckline, we might get a dead cat bounce, followed by a measured move down. The measured move should be the approx.

The second wave of buying comes into play once the strong shorts realize that this is not just a dead cat bounce, but that the move has legs. This will produce the second bounce, which will often precede the short-term top in the counter move.

Check out how the assumptions of theoretical risk models compare to actual market performance. The Uses And Limits Of Volatility
Make sure you know the difference between a change in market outlook and short-term recovery. The Dead Cat Bounce: A Bear ...

See also: See also: Stock, Market, Trading, Short, Share

Stock market  Day-trader  Dead money

 
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