Thread: Corrections

Sometimes the price falls sharply, reaches 50% back and then continues to fall. What does that tell me? That the back was only a pause before the bassist continuation? I am frustrated to think that the back is a �trap� more of the market.

What do you think of the use of volume in corrections? I have heard that if the volume drops during correction, it is more likely that the trend will resume.

I know the correction will come, but I anticipate it and get frustrated if it doesn't happen right away. How do you handle patience in this kind of scenario?

I have tried to automate a strategy based on retrogressions and Fibo levels, but the results were mediocre. Do these types of setups require more manual intervention or subjective filters?

I'm thinking of using moving stockings to identify the context before applying setbacks. For example, just take corrections if the price is above the EMA200 in daily. Does that make sense?

Honestly, it seems to me that many overvalue corrections. The market does not follow rules of geometry, and Fibo only serves because everyone believes it serves.

I have created an Excel sheet with historical data of EUR/USD measuring each regression after movements of more than 100 pips. There is an interesting pattern: 61.8% is less common than they say. Most bounce before.

What do you think of applying harmonic patterns to detect corrections? Gartley type, Bat, etc. I don't understand them at all, but they look precise... but also somewhat scavengeed.

I'm so confused about this that sometimes I'm thinking about leaving the corrections and operating just breakups. Has anyone else felt like trying to catch corrections is like hunting flies with chopsticks?

I was looking at stocks and realized that corrections there tend to be cleaner than in forex. Will it be for the least manipulation or the different structure of the market?