Beginners are starting out with little knowledge of many foreign exchange terminology.
For example, many traders do not know what a forex correction means, so let’s introduce what a forex correction means and how it relates to a trend.
Forex pullBACK in the meaning of the pullback refers to the rising trend of prices due to the speed of the rise, by sellers and temporarily fall back phenomenon.
The pullback is smaller than the rise, after the pullback will resume the uptrend.
Pullbacks are the most common form of forex trend, so learning to analyze them can help traders make better orders.
Forex corrections are closely related to trends because forex trading depends on the analysis of trends.
Only by making accurate trend judgment and formulating the next trading strategy and target can foreign exchange traders enlarge their profits.
What is the relationship between FX pullbacks and trends?
Through the trend analysis, it is not difficult to find that the market does not continue to operate in a trend indefinitely.
The trend market also has a break, and the rest of the trend may come in the form of a narrow consolidation, or D retracement of the previous trend.
So the pullback is, to some extent, another trend.
But this pullback is in the opposite direction of the previous trend.
This is a short-term trend.
Typically, the market will pull back to some well-known percentage of the previous move, then the pullback will stop, and then continue to run in the direction of the previous trend.
Canadian dollar falls on hold;
The new rules sent the pound to its lowest level in nearly a year.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
