Dead cat bounces

lucacrebbe

Trader
Jun 26, 2017
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Hello many times I have red this : ''Deadcats are preceded by heavy sell volume''
My question is: how can it be that there is heavy ''sell volume'' when the volume should be ''neutral'' (for each sell there is a buy)
What is meant with ''sell volume'' ?

Also: Are deadcat bounces preceded by higher volume if compared to the volume of the bullish upword trend tht then caused the deadcat bounce)?
 

Enivid

Administrator
Staff member
Nov 30, 2008
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Odessa
www.earnforex.com
'Heavy sell volume' usually means 'high volume on bearish bars' - i.e. the price was going down and the volumes were high. Whether it is a good predictor for an upcoming "dead cat bounce", I am not sure.