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Bounce

Recover after a decline; a bounce may be technical and short-lived, or the first leg of a broader reaction that still needs confirmation.

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This reference cites the Cyclepedia entry. The documents it draws on are listed in the entry’s sources.

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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.

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