Individual stock Correction

When a stock price rises due to positive news, the valuation becomes expensive (P/E ratio). When it becomes too expensive the stock price starts falling but may not be to original level. Then again it will rise. When the stock is under correction it is best time to quality stocks.

Overall market correction

Overall market undergoes fall or correction due to high valuation, negative news from Government. This will drag down almost all the stocks for short term. It is a time to buy

consolidation

Any good stocks after fall will undergo consolidation stage where it takes time to get enough momentum to rise. This is the good level to buy.

Support /resistance

      For a falling stock there will be support level (price) where it the fall stops and start rising.

      Rising stocks has resistance level where it loses its momentum to some extent.

      If upward/downward momentum is more, it can break resistance/support levels go to next range.