// TRADING TERMINOLOGY
What is Dead Cat Bounce?
A temporary recovery in asset prices after a prolonged decline.
In-Depth Explanation
Derived from the phrase "even a dead cat will bounce if it falls from a great height," it represents a false signal that a downtrend has ended.
Practical Example
"The stock dropped 40%, bounced up 5% in a dead cat bounce, and then continued to fall."
Related Terms
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