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Author Topic: What is market correction?  (Read 220 times)

Offline CryptoBlast

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What is market correction?
« on: March 02, 2019, 01:57:08 AM »
In my view, market correction happens after each bull run. This is when investors begin to cash out when enough profit has been made from the rise in price. The sell orders outweighs the buy orders - the reason why the price comes down eventually. If the correction stage becomes very intense, thus when the dip in price becomes huge, people begin to panic sell and the price goes down further. This is what caused the long bear market after the December, 2017 bull run.
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Offline The Journalist

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Re: What is market correction?
« Reply #1 on: March 04, 2019, 03:38:59 PM »
OP, it happens both ways - not just on buys alone. There are times when the market experiences surpluses and scarcity which are respectivelly over supply and demand. Whenever there is overbought, expect a crash. Whenever there is oversold, expect a bull run. That's the way I view the market. That's the correction.

Offline SpoKen

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Re: What is market correction?
« Reply #2 on: March 04, 2019, 06:05:51 PM »
When traders get punished with losses, that is the market correcting their over confidence in which ever strategy the traders are using. That is market correction.

Offline Volost

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Re: What is market correction?
« Reply #3 on: October 05, 2019, 03:49:16 PM »

FROM Wikipedia-
Market correction, or market rollback - is the price movement in the opposite direction with respect to the current trend, which arises due to overbought or oversold of the financial instrument in question.

 

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