PDB Academy

Academy › Glossary › Technical Analysis

Dead cat bounce

A brief rally inside a downtrend that fails before the decline continues.

Technical AnalysisIntermediate

Definition

The name comes from the saying that even a dead cat will bounce if it falls far enough. After a sharp drop, price recovers for a few sessions, which can look like a reversal, then rolls over again to new lows.

Watch out for

It is only identifiable afterward. A real bottom can start with a bounce that looks just the same.

Learn it in context with PDB Academy

Guides, short videos and a plain-English glossary in one place, with tools to try each idea on real market data. The basics are free.

Create a free accountOpen PDB Academy