The dead cat bounce gap trade. [ Ссылка ] PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE One system for day traders who like to trade earnings surprise announcements. There is usually plenty of movement in the markets around earnings season and this can offer trading opportunities. This works particularly for equity markets when you have some kind of overnight announcement and it is going to fundamentally change the value of that company. XYZ stock is trading at a certain price, say Y. The next day for some reason it gaps down to -7%. In the first 30 minutes it starts pushing lower, then we get the initial dead-cat bounce. We are looking to go short at some point on this. If the bounce doesn't take the opening level that is preferable. You are looking for some kind of reversal; that could be a double top or some wick to the upside.
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How to Trade the Dead Cat Bounce 🐱
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