Chart drop categories range from normal pullback to crisis, Steve Burns notes

Chart drop categories range from normal pullback to crisis, Steve Burns notes
Chart drop levels from pullback to crisis

Steve Burns, identified as founder at New Trader University, outlined specific percentage-based parameters for declines in chart patterns. Burns described a -5% drop as a normal chart pullback, -10% as a normal chart correction, -15% as a big chart correction, and -20% as entering technical bear market territory. He further categorized steeper drops, with -30% labeled as a chart plunge, -40% as a chart crash, and -50% as a crisis in fundamentals.

Burns has previously raised the question of which stock could achieve growth similar to Nvidia, citing factors like innovation and leadership in a recent discussion. He has also explained the use of R-multiples in helping traders evaluate outcomes relative to risk, as detailed in another note. These topics reflect his continued focus on risk assessment and growth dynamics in trading.

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