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Correction

A correction is a price rebound which can be observed after every trend impulse. After a correction takes place, the price returns to the trend. A correction on the currency market takes place due to the overselling or overbuying of instruments at the current moment in time. To measure the depth of a correction, traders need to apply analytical methods which are based on Fibonacci levels. Corrections may be upward, downward or sideways. Trading strategies which are based on trading against the trend (during a correction) differ in how much risk is involved.

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Trading Forex on margin offers good opportunities to receive high profit, and carries a high level of risk. Prior to trading you should make sure you fully understand all the risks involved and take into consideration your level of experience and financial situation.

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  • Tuesday, December 15, 2015
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