Monday, January 11, 2016

WSJ: What Is a Reversal vs. Correction?

By SIMON CONSTABLE
What is the difference between a reversal and a correction? 
It could matter a lot if you are trading.
By Wall Street’s rule of thumb, a correction is generally defined as a pullback in a market or index of 10% or more. More colloquially, it means that the underlying trend, either up or down, remains in place. In short, a correction is a temporary blip. Read more here.

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