Dead Cat Bounce
"Dead Cat Bounce" (Dead Cat Bounce) is a term referring to a temporary price rebound phenomenon in financial markets. It is used particularly in situations where stock or asset prices have fallen for a long period and briefly rise, only to fall again afterward.
The origin of this phenomenon lies in the ironic saying that "no matter how high you fall, even a dead cat will bounce once." In other words, even if prices recover temporarily, it does not indicate a genuine market recovery, but rather serves as a warning that the downtrend is likely to continue.
Traders should be careful not to mistake such rebounds for a genuine trend reversal in these situations.
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