Oversold Bounce

Traditional Chinese: 跌深反彈1 real trading day

An oversold bounce is a rebound after price falls a long way in a short time. Once selling pressure eases and some buyers step in, price can climb back part of the drop. The bounce may last only a few minutes or extend much further. In intraday trading it often appears right after a fast selloff at the open.

Oversold Bounce: hand-drawn illustration of the typical shape.

Oversold Bounce in my real trades

Oct 29, 2026 (Thu) | Short #1: oversold bounce

Oct 29, 2026 (Thu) hand-drawn illustration: The stock dropped hard after the open and bounced; the first short was placed on the bounce. — **The stock dropped hard after the open and bounced; the first short was placed on the bounce.**
A plain bounce short: after a sharp drop the stock bounced back, and the short went in on the bounce while it was still below VWAP. The main worry before entering was a sudden V-turn in the broader market.
Oct 29, 2026 (Thu) trading log →

The hand-drawn charts here are based on my real intraday screenshots from that day; the original entry screenshots are kept.

Related terms

Short Selling

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