The predicament facing short sellers when a bear market reverses its trend and becomes bullish. The assets continue to sell in anticipation of further declines in price, and short sellers then are forced to cover at higher prices
A false signal indicating that the rising trend of a stock or index has reversed when in fact it has not.
The situation that occurs when a bear market reverses its trend while bearish investors who thought the decline would continue sell short. The bears are eventually forced to buy at a higher price to cover their short position when the decline doesn't occur.
A signal that suggests that the rising trend of an index or stock has reversed but then proves to be false.