correction or reversal? what's your method?

[morbo]

I find this problem puzzles me ever since I started trading stock/etf a year ago. However, there are many people in the forum predict price action down to amazing precision.

how do you tell if a trend is about to go into reversal or it's simply a correction?
do you use multiple indicators for confirmation? what if some of them are pointing in a different direction than the rest?
do you weigh each indicator differently? base on what factors?

 

[tomorton]

Your main question - reversal or correction - I don't think there is a way to be certain 100% of the time, but we don't need to be, about 60% will do fine.

A counter-trend move is more likely to be a correction if its in a trend in the first place. I see price movements outside of trends as just noise. Within a trend, the most likely thing that price will do next is continue the trend.

With regards indicators, everyone has their favourite but the more you use, the more will contradict each other (and price action) rather than corroborate.

 

[EnlightenedJoe]

Offer a share of the profit to those forum people and ask them to make the predictions for you. It would be a shame to let talents go to waste.

Another solution would be to increase your own ability to find more opportunities, then the need to maximise each one is reduced. In that case you can just do random profit taking.