Maybe this thread seems kinda noobish to you guys, but the answer to my question in not as simple as you might think!
It is often clear that, when a big move occurs (large drop down or up like a rocket) and when then this move happens in a very short period of time, we can expect a correction of some sort. Or can't we?
That's why we use fibs, don't we?
My question is basicly,how sure are we that after a big move a certain correction will come. And how big wil this correction be (.38-.50). How certain are we that price just wont keep falling and how do we see when the move is over? (Doji-double/triple bottom)
The reason why I ask this, is because I'm developing a sort of method of trading focussing on corrections.
If you guys know any research or historical data that can back the correction theory up, it would be much welcome.
Thanks for helping out!
It is often clear that, when a big move occurs (large drop down or up like a rocket) and when then this move happens in a very short period of time, we can expect a correction of some sort. Or can't we?
That's why we use fibs, don't we?
My question is basicly,how sure are we that after a big move a certain correction will come. And how big wil this correction be (.38-.50). How certain are we that price just wont keep falling and how do we see when the move is over? (Doji-double/triple bottom)
The reason why I ask this, is because I'm developing a sort of method of trading focussing on corrections.
If you guys know any research or historical data that can back the correction theory up, it would be much welcome.
Thanks for helping out!