What the heck is a dead cat bounce … other than a morbid band name? (Sorry, music fans, that’s just not my beat.)
I’m talking, of course, about the dead cat bounce in relation to the stock market. It’s a stock chart pattern that can occur with some downward trending stocks.
Market downtrends aren’t great. But here’s the thing … The dead cat bounce isn’t all bad, even if the name’s a bit grim.
Today, I’ll give you the lowdown on the dead cat bounce pattern — what it is, how to spot it, and how you can use it.
Thinking about joining my Trading Challenge? Consider this a free lesson. And the more you know about chart patterns, the better you can use them in your trades. Let’s do this!
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