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pls expalin

2007-11-24 00:44:01 · 6 answers · asked by viji 2 in Business & Finance Investing

6 answers

correction means when index of stock exchange fell down very shortly in fair way it is called correction after correction market becomes consolidated for upward movement which is called consolidation of market.

2007-11-24 21:18:07 · answer #1 · answered by Udit D 4 · 0 0

A correction is the retracement of a portion of the move up in a bull market trend. If the market just ran up 200 points, it is reasonable to have a 50% correction of 100 points.

A consolidation is the sideways movement of prices over a period of time. The market cannot get above a certain price level nor will it drop below a certain price level.

2007-11-24 00:48:00 · answer #2 · answered by Mencken 5 · 1 0

A consolidation is a sideways moving price action from a general trend.

A correction is a noticeable short term move in the opposite direction of a general trend. Stock market experts generally quantify this at a minimum of 8% or more to be called a correction.

2007-11-24 14:59:00 · answer #3 · answered by !!! 7 · 0 0

Consolidation means movement of prices of stocks and indices within a narrow range, till the prices are stabilised before making an upward movement.
When stocks become overpriced, and indices reach a high level, generally profit booking takes place, and selling pressure brings down prices of stocks and also the indices till buying interest emerges. This is referred to as 'correction'. In general,price of volatile stocks that had risen faster , also come down faster during correction.

2007-11-24 01:26:19 · answer #4 · answered by Samarjit P 1 · 1 0

consolidation here refers 2 generation of funds whereas correction refers high liquidity consolidation is much safer but correction provides strength 2 long term invesators but other is viceversa

2007-11-24 01:11:25 · answer #5 · answered by Anonymous · 0 0

Some, probably not all. Most of these are just preached through ignorance or are the thoughts of a select few scholars and followers..

2016-05-25 04:54:21 · answer #6 · answered by ? 3 · 0 0

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