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What is a trend retracement, reversal or correction in the forex market?

What is trend retracement or correction: When the market price moves against the main trend, it is usually called trend retrestment or correction. When a small movement is made against the uptrend, it is called a retest or correction. A sudden downtrend is called a retest or correction. This movement of the market against the uptrend is a market correction or trend retracement. Essentially, market movement against the main trend is called a retracement. Same definition for down trend.


If there are more buyers than sellers, the market goes down. Again, when there are more buyers than sellers, the market starts to rise. This is one of the reasons for retrestment or correction. Sellers cannot hold the market against the trend for long. For this, the market makes small movements. And these small movements are retrestment or correction, when the presence of buyers in this market is more, then they move against the trend, and when it is seen that the presence of sellers is more, then the market main starts moving towards the main trend.


What is Trend Reversal : Reversal means opposite. When a trend moves in its opposite direction and forms another trend, it is called a trend reversal. When an uptrend comes to a down trend i.e. the price from which it comes to a down trend is called a reversal price. When a trend goes down from an uptrend, it is called a reversal, and when a trend goes up from a down trend, it is called a reversal. When the market reverses from an up trend to a down trend, it is because there are more buyers than sellers. Again, when there are more buyers than sellers in the market, the down trend reverses and becomes an up trend.

 

 

 

 

 

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