$ETH
💡The difference that makes winning trades!
Most beginners exit the 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) followed by a continuation of the rise.
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2. Reversal:
A complete change in direction — from bullish to bearish or vice versa. It is often accompanied by a break of strong support/resistance areas + a change in price structure.
3. Indicators to help you:
RSI: from overbought to the opposite direction
MACD: clear crossover with a change in momentum
Volume: sudden increase with a breakout indicates a reversal, not just a correction.