dead cat bounce
/dɛd kæt baʊns/
a temporary recovery in a declining asset's price, followed by a continuation of the downtrend
dead cat bounce in a sentence
“Investors who mistook the dead cat bounce for a reversal suffered further losses.”
Origin of dead cat bounce
From the macabre idea that even a dead cat will bounce if dropped from high enough
Related Words
head and shoulders
a chart pattern with three peaks — a higher middle peak flanked by two lower ones — signaling a trend reversal
RSI
relative strength index — a momentum oscillator measuring the speed and magnitude of recent price changes, scaled 0 to 100
MACD
moving average convergence divergence — a trend-following momentum indicator showing the relationship between two moving averages
Fibonacci retracement
horizontal lines on a chart at key Fibonacci ratios indicating where support or resistance may occur
overbought
describes a security that has risen sharply and may be due for a price correction
volume
the total number of shares or contracts traded for a security during a given period