I’ve been seeing that word in relation to currency lately. Example:
“Going forward the U.S. Dollar is likely to regain steam headed into the third quarter, following its recent [B]correction[/B]”
…the price action seems [B]corrective[/B] as the Euro is expected to extend its downtrend.
EUR/USD fell to a session low of 1.3585 but found support at that level and has spent the last hours [B]consolidating[/B]…
I know what the words mean, but what do they mean in relation to the fx market? Thanks!
Corrections are when price moves against the trend. They are basically counter trend moves. Another correction can be when the market makes a huge move for no real reason then goes back thats a correction.
Consolidating is when lets say we have been in a down trend then price stops and just seems to group up in one spot thats a consolidation.
I disagree about about corrections, to me it’s just a nice word the stock market traders use when shares crash, what it really means is - Oh F**K the markets crashed and we’ve gambled all the public’s money away, but if we just call it a correction it won’t sound so bad.
Me a cynic? never!
Thanks!
LOL
This has got to be the best saying I have ever herd