In simple terms
A bounce is a price recovery after a decline. It may be a reaction at a demand zone, sellers taking profits, or the beginning of a new trend. The word describes the move, not which explanation is correct.
How traders use it
«The market bounced at support» means that price stopped falling and moved higher. A technical bounce often refers to a recovery inside a broader downtrend. If price later changes structure with convincing volume, the interpretation may change, but one candle is not enough. A small recovery after a large fall is not the same as returning to the previous high.
Limits and links
Do not buy every bounce or treat a counter-move as a confirmed trend reversal. Define invalidation, size, and horizon. Buying the dip may target a bounce, but the decline can continue. See pullback for the broader pattern.
Sources
- CME Group, “Support and Resistance” — explains areas where price may pause or reverse.
- Investopedia, “Dead Cat Bounce” — shows why a brief recovery does not confirm a trend change.