This refers to a consolidation in the price of a stock or any other financial security after a strong rally. The price of the security moves sideways rather than upwards or downwards during such price consolidation. Time correction is different from price correction where the price of an overvalued stock or other security falls to a level that is commensurate with its fundamental intrinsic value. During time correction, the security trades within a strict price range and waits for its fundamental value to rise and match its current trading price range. Traders usually buy securities that breakout from a price range after a long period of time correction.
