Dead Cat Bounce β Short-Lived Recovery ππ±
π The Dead Cat Bounce is a temporary recovery in a falling market before continuing the downtrend.
β
Formation:
1οΈβ£ Sharp decline with heavy volume.
2οΈβ£ Small pullback or 2β3 green candles.
3οΈβ£ Quick resumption of selling pressure.
β
Meaning: Weak recovery caused by short covering β not real buying interest.
π Example: Stock crashes βΉ950 β βΉ780, then rebounds βΉ820 for two sessions and again falls βΉ760 β Dead Cat Bounce β continuation of downtrend.
π§ Tip: Avoid buying in such bounces unless strong reversal confirmation appears.
MARUTI
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