Some of you have asked, what exactly is a “Market Pullback” or “Market Correction”? 🤔 Let me explain it my way!
Imagine you’re selling potatoes 🥔. One day, someone announces a fast food fair where everyone can bring French fries 🍟 and compete to become the best fries spot in town! Suddenly, everyone starts rushing to buy potatoes to make fries. With high demand and limited supply, the price starts rising. 💰
Now, some clever (but dishonest) folks start buying up huge amounts of potatoes, hoarding them, and selling them for even higher prices. Let’s call this the "potato syndicate." 😏
After a while, the price shoots up by 60%! But then the government steps in, reveals the actual supply of potatoes, and announces the market correction, which makes the price drop by 10%. 📉 This is price correction.
The next day, sellers from other cities bring in their potatoes and the price drops another 25% as the competition heats up. This is what we call a pullback. 🛑
Then, suddenly, the government announces they’re going to import potatoes from China 🇨🇳 and just like that—boom! The market crashes, and the price tumbles by 50%. 📉 That’s a market crash.
Finally, someone does their homework and reveals that the fast food fair was all a scam! 😱 As soon as the news spreads, the price of potatoes crashes to nearly 0. This is what we call a market scam. 🚨
So, for the current bearish trend, which one seems like the right indicator? 🤔 My guess is a Market Crash. What do you think? 💭