Predicting a market correction is not easy. Corrections can happen quite often. Technical analysis can help identify potential correction points by looking at current price data against support and resistance levels.
If the currency continues to break through the resistance level but quickly declines, the market may be bullish but volatile. These may be ideal conditions for a correction.
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Another way to try to spot a correction is to look for triggers. Again, this is not an exact science. You might assume that a trigger might not cause a correction, but something unexpected might happen. However, certain events can cause corrections.
Some motivators you can look for are:
Key economic updates,
đ” Such as higher interest rates or new fiscal policies.
đ©ïžConflicts are like war
đȘïžAdverse weather conditions that can affect production chains
đ«Restrictions that can impact supply chain issues
đŠMainstream news or social media activity can cause prices to rise leading to a correction.
These are just some of the events that may lead to a correction. For example,
If restrictions significantly disrupt supply chains, you can assume that the value of currencies will decline. This is not certain to happen,
But this is the kind of thing you should think about as a trader.
Finally, know that the rise is followed by a correction wave. Be careful, do your research well, and take advantage of correction opportunities.
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