Glossary

What is ABC correction?

An ABC correction is a three-wave counter-trend (or consolidating) structure: A, B, then C.

An ABC correction is a three-leg corrective structure: A and C are usually motive in the corrective direction; B retraces part of A.

Providers often wait for wave B to finish before signaling wave C, or wait for ABC completion before signaling the next impulse.

Check whether the Signal's stop respects the ABC invalidation (for example beyond the start of A or C extremes) before you size the trade.

Related terms

Follow Signals in PipAlert

Browse Channels, join a Package, and get push alerts when Signals post.