(redirected from self-corrects) Also found in: Dictionary.
Describing a situation where a trend is likely to reverse itself and restore the status quo. For example, if a security drops in price by $5, a self-correcting trend would provide some indication that it will soon rise (roughly) $5 to its previous price. See also: Reversion to the Mean.
Of, relating to, or being a security price movement that is excessive and likely to be at least partially retraced.