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Nicolealexandra01
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Correction
What is it?
A correction is a more significant drop in the price of an asset after a period of prolonged growth. It is a necessary adjustment to balance the market and usually occurs when prices are overvalued.
Characteristics:
Typically, the drop ranges from 10% to 20%.
It can indicate the exit of investors who take profits.
It helps to avoid speculative bubbles.
Retraction
What is it?
A pullback is a temporary movement against the prevailing trend. For example, in a bull market, there may be small drops before the price continues to rise.
Characteristics:
It is usually short-lived.
It usually represents a healthy pause in the trend.
It can be used as a buying opportunity by investors.
What is it?
A correction is a more significant drop in the price of an asset after a period of prolonged growth. It is a necessary adjustment to balance the market and usually occurs when prices are overvalued.
Characteristics:
Typically, the drop ranges from 10% to 20%.
It can indicate the exit of investors who take profits.
It helps to avoid speculative bubbles.
Retraction
What is it?
A pullback is a temporary movement against the prevailing trend. For example, in a bull market, there may be small drops before the price continues to rise.
Characteristics:
It is usually short-lived.
It usually represents a healthy pause in the trend.
It can be used as a buying opportunity by investors.
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