@rsingh12 Stocks generally moves in Contractions and Expansions w.r.t. Moving averages. You can check these movement by simply adding 20,50 & 200 days Moving averages on the daily chart. Price has to return back to its MA. If the price is far from MA, we says its expended and its better to wait for the price to correct.
These correction can be achieved either when price comes to MA level or price consolidate in a range and as time lapses, MA reaches price. We call these price wise or time wise corrections in technical analysis terms.
Subscribe To Our Free Newsletter |