🌀 Corrective Waves — Where Smart Money Reloads Before the Next Big Move 💼📉📈
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Ever see price stall and chop after a strong move?
That’s not random. That’s a correction — and it’s where the next trade is born.
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📚 What Is a Corrective Wave?
A corrective wave is a pause or pullback that follows an impulse leg.
It’s not a trend reversal — it’s the market catching its breath before continuing in the same direction.
Think of it as:
🛑 “Reload zone” for smart money
🪤 Trap zone for retail traders
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🔍 Key Traits of a Corrective Wave
• Slower and weaker than impulse moves
• Choppy price action
• Often respects structure or ranges
• Volume dries up
• Can form channels, flags, or triangles
📌 Most traders get chopped up here — but pros use it to enter.
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🎯 How to Trade Corrective Waves
1. Let the Impulse Happen First
No impulse = no correction.
✅ Wait for strong move
✅ Identify BOS + volume surge
✅ Mark the leg from start to finish
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2. Map Out the Retrace Zone
Most corrective waves return to:
• Fair Value Gaps (FVGs)
• Order Blocks
• Previous range midpoints
• Fib 50–61.8% (optional)
Don’t trade inside the chop. Wait for reaction at the edge.
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3. Look for Breakout From the Correction
Once the wave starts to stall or coil:
• Watch for mini-BOS on lower timeframe
• Confirm with volume spike or engulfing candle
• Enter continuation in direction of impulse
🎯 That’s where the real setups happen.
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⚠️ Common Mistakes
🚫 Trying to trade inside the correction → chopped up
🚫 Mistaking correction for reversal → wrong bias
🚫 No impulse before = unclear direction
Patience here = sniper entries later.
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💡 Pro Tip:
Corrections often set liquidity traps before continuing.
Look for equal highs/lows just outside the range → stop hunt → THEN breakout.
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🔐 Final Word
Impulse legs show the move.
Corrective waves offer the entry.
Learn to wait during the correction.
The real profit comes from the breakout.