dead cat bounce trading strategy

Dead Cat Bounce

Dear Friends, forex ma market ya pair ki continue downfall moment ma small price recovery ko dead cat bounce kehtay hain, is ma prices down ki taraf moment karti hain aur aik certain position par pohnch kar prices further decline k liay kuch pause hoti hain aur thori si above moment k baad dobara down moment ko continue karti hain,



Analysis using Dead Cat Bounce

Technical anaylisis ma hmain Dead cat bounce ko trend reversal ki bjay trend continuation pattern samajhna chaiay, q k initial stage ma traders dead cat bounce aur trend reversal ma confuse ho jatay hain, is liay unhain chaiay k jaldbazi ma koi decision lainay ki bjay wait karain aur confirmation k baad trades ko open ya adjust karain, ta k koi mistake n aho jo loss ka sabab bnay, is ma prices short retracements k baad downward prices moment ko continue karti hain,



Trading Strategy using Dead Cat Bounce

Strategy ki bat ki jay to ye aik bullish ya buy trap bhi smjha jata ha jis ma bht saray traders isay trend reversal samajh kar long positions la laitay hain jis sa wo major mistake kar jatay hain aur apnay account ko risk ma daal laitay hain aur trend k opposite trade set kar laitay hain jo downward continue ho jata ha, dead cat bounce ma prices thori si backword moment k baad ya rise honay k baad downtrend ko continue karti hain aur previous support levels ko break kar k new levels low levels create karta ha, traders ko is small upward reversal ma confuse nhi hona chaiay is k liay unhain tahamul k sath achi position ka wait karna chaiay ta k agr market ki further downfall hoti ha to is sa unhain minimum loss ka samna karna paray jo easily recoverable ho.




A Trap For Traders

Jb dead cat bounce me market small recover karti hai to trader ko ye lagta hai ky market bullish ma jany wali hai so ye dead cat bounce ko bullish trend samajna start ho jaty hain or es tarha wo bullish trap ma phans jaty hain. Market aik bar phr jab down move start karti hai to unko loss start ho jata hai. So es ma trade ka best method ye hai k trader ko market ki small recovery k bad phr sy sell ki trade open karni chahe or ye samajna chahe ky ye berief recover kuch dair me phr sy downward trend me change jay gi.



Advice For Traders

Forex trading ma agr market down trend ma jaty hoe recover kary or ye recover market k 50 percent fall sy zayada ho jae to trader ko samaj jana chahe k market ma new trend ah chuka hai or market might b again up jana start ho sakti hai. So unkl es mutabik trades ko adjust karna chahe.

Re: Dead Cat Bounce Trading Strategy

Dead cat bounce bearish trend main daikhny ko ati hay jis main price down aty aty some up jati hay jo keh aik short recovery dikhati hay laikin again price same downtrend main falling continue kar daiti hay. Dead cat bounce isko is liye kaha jata hay keh jab koi cat uper say nichy aye to woh some jump karti hay isi liye isko dead cat bounce pattern ka name dia jata hay. Dwontrend patterns main aisa frequently chalta rehta hay jab rallies main price recovery hoti hay aur price rise hoti hay.



Ideas behind dead cat bounce.
Technical analysis kay mutabiq dead cat bounce downtrend main occur hota hay. Jis kay natijy main price some reversal karti hui up jati hay laikin again downtrend main continuation kar laiti hay. Laikin iskinaik aur strange bat yeh hay keh dead cat bounce ban jany kay bad he identify hota hay aur real main isko find karna very difficult hay.



What dead cat bounce tells us.
Ye pattern long term trading kay liye ya short term trading kay liye tab he suitable hay jab yeh long down trend main nazar aye bashartekeh is main buy ki trade na ki jaye. W keh dead cat bounce technical and fundamental analysisnki base per find kia ja sakta hay laikin is main reversal samjhty huye trading harmful sabit ho sakti hay. As usual market jab bhi down trend main a rahi hoti hay to some reversal laiti hay. Isko smjhny jay liye ham broad chart patyern ko samjhain ta keh is short reversal say bach sakain. Short term traders is main buy kar sakty gain laikin long term investors dead cat bounce main again up side say selling initiate kar sakty hain.



Limitations of dead cat bounce.
Uper bhi yeh bataya gia hay keh dead cat bounce pehly nai pata chalta. Kuch trader jo reversal smjhty hain woh ager buy main enter ho jayain to pattern ban'ny kay bad he woh janty hain keh yeh to dead cat bounce tha. Is liye is pattern ko kaisy smjha jaye is kay liye lot of trading practice and money ki zaroorat hay ta keh short buy ki trade stop loss hit ho jany ki surat main new selling order kay through is loss ko recover kia ja saky aur market main mazeed alive raha ja saky.