A correction is a reverse movement, usually negative, of at least 10% in a stock, bond, commodity or index to adjust for an overvaluation. Corrections are generally temporary price declines interrupting an uptrend in the market or an asset.
DEFINITION of ‘Uptrend‘ Describes the price movement of a financial asset when the overall direction is upward. A formal uptrend is when each successive peak and trough is higher than the ones found earlier in the trend.
Position Entry is the timing for an investor or trader to position they buying point onto a stock while pending for it’s price action and volume to take place riding the continuous trend.
WHEN an investor or trader decides to position into a particular stock, he/she must prepare at 1) what price range is the entry pricing zone, 2) shall price reacts the opposite at what price range is the stop loss pricing zone, 3) as profits starts building up when to take profits.
With reference back to previous blog:
Malaysia FBMKLCI crashed -9.8%! Are we officially in a Bear Market now? Crucial point to take note.
Malaysia FBMKLCI Weekly Chart
- The FBMKLCI played well with its Crucial Support play (1,735) last week closing above that level and rebounded.
- Immediate target for the FBMKLCI is at 1,800. A break out from this level = Bull Market has return.
- Long term market risk remain at the Crucial Support (1,735).
- Broad market stocks are seen with a healthy rebound from every sector.
- Always always know how to differentiate between an uptrend stock vs an downtrend stock.
- Uptrend stock = short, medium, long term play.
- Downtrend stock = short term play. (Generally rebound with lots of resistant to take note.
- Have a Trading Plan and trade with your trading plan.
06.06.2018 Top Volume Performance Stocks