corrective waves

Corrective waves are movements in financial markets that counter the main trend, often occurring after strong price movements. While a market may experience a significant upward trend (impulsive wave), corrective waves represent pullbacks or retracements where prices decline or stabilize before the trend resumes. They typically reflect market uncertainty or profit-taking by investors. Understanding corrective waves helps traders identify potential reversal points and make informed decisions, ultimately improving their ability to navigate market fluctuations.