Rally definition
Rally
A rally is a series of price increases in shares, indices, or bonds over a short period on the stock market. A considerable boost in demand from a rise in investment generally stokes a rally, and they often follow a period of flat or downward growth.
A rally that occurs during a prolonged period of price declines is called a bear market rally, and this can sometimes be mistaken for an end to the bear market period. However, it is considered a bear market rally only when prices stay underneath the level of the bearish decline.
A rally that occurs in a period of rising prices is called a bull market rally, which is less common than a bear market rally.
What is a bear squeeze?
A bear squeeze is when traders who have shorted an asset during a bear market are forced to buy back the asset due to a sudden spike in price action, such as a bear market rally. Bear squeezes work similar to short squeezes in that the asset is heavily shorted at the time its price moves sharply upward.