How do you differentiate between correction✅ and reversal📉 in the financial markets, so you don't lose your money🤔💸?
In financial markets, the concepts of reversal and correction are used to describe price movements 📈📉, but they differ in nature and causes. Here's the difference between them:
Reversal:
Definition: A reversal occurs when a market or financial instrument changes its general direction (main trend) from up to down or from down to up 🔄.
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