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Secondary trends are short-term changes in price direction within a primary trend. One type of secondary market trend is called a market correction / consolidation. Brief consolidation is often needed during large price runs, as it is nearly impossible for such large price moves to sustain themselves over the longer term.
Market correction is a decrease in the market price after extensive price increases. Trend corrections are generally temporary price declines, interrupting a market trend. A technical market correction occurs even when there is no evidence that the increasing price trend should cease. It is often caused when investors temporarily slow down their purchases of securities, which commonly leads to a pullback toward a short-term support level.
A larger correction is also known as a sideway trend. Sideways trend is generally a result of the price traveling between strong levels of support and resistance. It is not uncommon to see a horizontal trend dominate the price action of a specific asset for a prolonged period before starting a move higher or lower.
About the indicator:
The Forex Market Correction Indicator identifies when market has been trending for too long and a price consolidation period is expected. Then the indicator shows an arrow according to the direction price might retrace to and a value market might reach. The arrow is colored
Blue when chances are 50% for price to retrace;
Yellow when chances are 70% for price to retrace;
Green when chances are 90% for price to retrace;
Red when price has been trending for longer than usual;
Market Correction Indicator
Theoretical details:Secondary trends are short-term changes in price direction within a primary trend. One type of secondary market trend is called a market correction / consolidation. Brief consolidation is often needed during large price runs, as it is nearly impossible for such large price moves to sustain themselves over the longer term.
Market correction is a decrease in the market price after extensive price increases. Trend corrections are generally temporary price declines, interrupting a market trend. A technical market correction occurs even when there is no evidence that the increasing price trend should cease. It is often caused when investors temporarily slow down their purchases of securities, which commonly leads to a pullback toward a short-term support level.
A larger correction is also known as a sideway trend. Sideways trend is generally a result of the price traveling between strong levels of support and resistance. It is not uncommon to see a horizontal trend dominate the price action of a specific asset for a prolonged period before starting a move higher or lower.
About the indicator:
The Forex Market Correction Indicator identifies when market has been trending for too long and a price consolidation period is expected. Then the indicator shows an arrow according to the direction price might retrace to and a value market might reach. The arrow is colored
Blue when chances are 50% for price to retrace;
Yellow when chances are 70% for price to retrace;
Green when chances are 90% for price to retrace;
Red when price has been trending for longer than usual;
