What Is a Dead Cat Bounce Pattern and How to Trade It?

The Dead Cat Bounce is one of the most deceptive patterns in financial markets. It traps thousands of traders who mistake a short-lived rally for a genuine trend reversal.So, what is a Dead Cat Bounce? It is a temporary price recovery after a sharp drop within a strong downtrend.Many beginners see green candlesticks after a crash and start buying, hoping for a sustained recovery. Experienced market participants know this rally is a trap and that the decline will soon resume, driving the price to