The "bounce" in the market does not necessarily mean an opportunity for profit... Sometimes it is just a trick similar to a child saying: "I didn't take anything from the fridge" while cake crumbs are on his face! 🍰😅

Many traders, as soon as they see a green candle after a sharp drop, rush to buy thinking that the market has started to rise again. But the truth? That might just be a "dead bounce" or what is known as Dead Cat Bounce 🐱💀.

🔍 Take a real example:

After the price of Ethereum dropped from $3900 to around $3400, a strong reversal candle appeared. Some thought it was a signal to rise, but those who monitored the trading volume realized that the buying momentum was weak, which means that the movement might have been temporary and not supported by strong fundamentals.

⚠️ Here are some questions you should ask before making a buying decision at the moment of a bounce:

Does the trading volume support this bounce?

Has a significant resistance level been broken?

Is the overall market context bullish or is this just a short correction within a downward trend?

🎯 In short: Entering the market just because a green candle appears, without checking the data, is like jumping into the sea just because you see bubbles... it could be a fish, or it could be a shark 🦈