Hey wondering if anyone has any tips for trading correction and/or how to spot the difference between corrections and reversals early on. Thank you !
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Whatever the answer, Iām not going to believe it.
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This is a way do to it. You first identify where is stop hunted and above which high / below which low the market has not moved yet. If this is in line with the higher timeframe trend, then you have a possible lower timeframe reversal. This is never an absolute. It is always very difficult to catch tops and bottoms. I prefer to wait and see if the market reverses. If it does, I will trade after.
This EURCAD is in line with the D1 trend, hence I am buying here and not expecting a reversal. If I am wrong and the market reverses, I have gotten feedback from the market.
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I want to know the answer first then I will analyze.
As per my studies, low volume more often correlated with upward price movements, whereas during selling, volume tended to go up.
Some say that volume precedes price changes. Others say that price changes and then volume changes as more react to the price change based upon their perception of what is going to happen next.
I make use of the regular divergence from my tool box to spot reversals. While corections i make use of the trendlines to watch price