🎁 How to distinguish between correction and reversal?🤔
💡The difference that creates winning trades!
Most beginners exit a trade at the wrong time, either out of fear of a natural correction or entering late after missing the reversal opportunity.
📌Here are the differences simply:
1. Correction:
A temporary movement against the general trend, often occurring within a known price channel or support/resistance area.
Example: Strong rise, then slight drop (correction) then continue rising.
2. Reversal:
A complete change in direction — from up to down or vice versa.
Often accompanied by breaking strong support/resistance areas + a change in price structure.
3. Indicators that help you:
RSI: From overbought to the opposite direction
MACD: Clear crossover with a change in momentum
Volume: Sudden increase with the breakout indicates a reversal, not just a correction.
4. Time is important:
Correction is often quick. Reversal is slower at first then explodes later.
💡Understand the difference, and enter with confidence.
💭 How do you build a strong trading plan and stick to it?
(The practical guide🎯)
If you benefited, don’t hesitate to like, share, and follow ❤️
