What is market deceleration or retracement #MarketPullback ?

This concept of market deceleration reminds me of the British transatlantic ship Titanic, when it is going full speed to break the record time of arrival in the United States, (bull market 📈).

However, upon seeing an iceberg in its path (market factor), they stop the engines to try to change course, but it does not stop due to its own inertia (temporary market deceleration), not a trend change; it continues on its path but at a slower speed, which leads to various possible scenarios:

1. Opportunity to invest as currencies have decreased in price, but with caution to manage the risk of it not being a trend change.

2. The drop is temporary and the market resumes its upward path.

3. The difference between a retracement and a trend change is the temporality; the first occurs over a short period and the second, the market price drops and is deeper, configuring a downward trend.

4. Trading can be done while managing risk, estimating the time of the drop and its rebound, but one must be careful not to be in a trend change.

It is interesting to predict market behavior, but if we do not manage risk well, we will experience the same fate as the Titanic, a high-magnitude impact that will take us to the bottom of the sea, a significant loss with a great economic impact on our portfolio.

Therefore, one must be meticulous in knowing whether it is a retracement or a trend change, with the help of moving averages and technical and fundamental analysis.

Good early morning to all ♥️.