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Definition
A temporary recovery in price during a larger downtrend. The name comes from the dark joke that even a dead cat will bounce if dropped from high enough. Traders who mistake it for a real reversal often get burned.
Related Terms
A prolonged period where prices fall 20% or more from recent highs.
A sustained increase in prices after a period of decline or consolidation.
A period when smart money quietly buys up an asset before a major price move.
The average yearly return on an investment, calculated to account for compounding.
Profiting from price differences of the same asset across different markets.
The lowest price a seller is willing to accept for an asset.
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