very simple and very useful:
you have a sharp rise or fall, the price makes a wedge or flag, you know there would be a correction, and then:
1. wedge will reverse the trend
OR
2. flag will continue the trend
where is the limit for correction to take profit from a trading range or enter a new trend?
50% of the rally/drop
for example, look at below ETHUSDT chart:
the pink mark is slightly below 50% of the last drop. I may long till there or set up a short position from that level.
