$ETH How to distinguish between correction and reversal?🤔

💡The difference that makes winning trades!

Most beginners exit trades at the wrong time, either out of fear of a natural correction or entering too late after missing the reversal opportunity.

📌Here are the differences simply:

1. Correction:

A temporary movement against the general trend, often occurring within a price channel or a known support/resistance area.

Example: Strong rise, then slight drop (correction) then continue rising.

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2. Reversal:

A complete change in direction — from bullish to bearish or vice versa. 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 the break indicates a reversal, not just a correction.