what is Market Pull back

Some of you asked me what is “Market Pull Back” or “Market Correction”.

I will explain it in my way.

Imagine, you are selling potatoes 🥔. One day, suddenly someone came and started saying there will be an fast food fair and everyone can come with french fries 🍟 and participate in a contest and can become the best french fries chain in the city.

Hearing this people rushed to buy potatoes. Due to increased demand and less supply the price started to increase.

Some dishonest businessmen bought huge amounts of potatoes and stacked them and started selling them in even more higher prices. Let’s call it potato syndicate.

Let’s say the price increases to 60%. However, after checking the government found that there was syndicate manipulating the prices. They announced the total supply of the potatoes. After calculating the market got corrected and the prices declined by 10%.

This is price correction.

Then after a day, other sellers from different cities brought their potatoes to sell in high rate. The priced pulled back by 25% as new sellers are rushing to sell.

This is pull back.

Then government suddenly decides to import more potatoes from China and as soon as the news comes, the market crashed and the price dropped to 50%.

This is market crash.

After all, someone did his proper research and found that the news of first-food fair was a fake news and he announced it to everyone. Suddenly the market fall and the price of potatoes came almost 0.

This is market scam.

So, for the current bearish move, which one could be a legitimate indicator? I guess Market Crash.

What do you think?

#MarketPullback