Dead cat bounces

Discussion in 'Newbie Questions' started by lucacrebbe, Jul 6, 2019.

  1. lucacrebbe

    lucacrebbe Trader

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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)?
     
  2. Enivid

    Enivid Administrator Staff Member

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    '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.
     
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