Having looked for only breakout opportunities when I first became interested in trading, it was quite a change of perspective to wait for corrections during a trend and look to enter on those.
I am talking about the corrections that occur as a stock is in an established trend.
It appears that the obvious advange is a low risk entry (and greater potential for higher R:R).
I'd like to open up a discussion on what constitutes a good entry opportunity on a correction.
Personally, I am either looking for excess volume on the correction i.e. minor selling/buying climax and also divergence on the MACD histogram.
I've attached an old chart to illustrate exactly what I am referring to. The orange circles represent such opportunities (be they good or bad ones).
ILU - 2004.png