Jul 4 2020 11:15
Hi Reid Smith,
An example of the correction is when the price is in an uptrend, it will down for a moment, then it will continue to go up and vice versa. A currency correction can be seen when it is rising and then stops, weakening for a while, and then resuming its trend again. Technically, it can be seen with the stochastic oscillator pattern. Thanks
Jul 6 2020 11:18
How to see the correction with stochastic? Isn't it even prone to false signals? I think Stochastic is a momentum indicator.
Jul 7 2020 11:21
In the use of stochastic, overbought and oversold means that the market has moved too far and too fast, requiring correction in the near future. then the TF used must be aligned. if the TF h1 weakens, then in D1 it can strengthen. thanks.
Determining the end of the correction can be seen by:
1. middle Bollinger band (12,2) as support or resistance
2. Money Flow Index as a gauge of market saturation. thanks.
