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Correcting

Price movement that is in the direction of the trend is called “trending”. Price movement that is in the opposite direction is called “correcting”. Corrections can be single legs of a smaller pattern, or a combination of legs and patterns that retrace a more sizeable leg. Regardless, the expected resolution to a correction is a resumption of the trend.

Following are examples of corrections within patterns. Each is linked to more examples of the pattern:

Ascending Triangle

Channel

Complex Triangle

Descending Triangle

Double Bottom, Double Top

Head & Shoulders

Island

Rounding Bottom, Rounding Top

Symmetrical Triangle

Wedge