Price Recovery Signal

Definition ∞ A price recovery signal is an indicator suggesting that a financial asset’s value may begin to rise after a period of decline. This signal is typically derived from technical analysis, observing patterns in trading volume, price action, or specific chart formations. It provides potential insights for traders and investors. Such signals are not guarantees, but rather probabilistic indications.
Context ∞ In cryptocurrency markets, analysts frequently discuss price recovery signals to assess potential turning points after market corrections. The volatility of digital assets makes identifying reliable recovery indicators a constant area of focus for market participants. News often reports on expert interpretations of these signals, offering perspectives on short-term and medium-term market movements for various digital currencies.