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Corrective Leg

By LuxAlgoMar 24, 2026

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Corrective Leg is the definitive clean classifier for the corrective leg: the slow, overlapping counter-move retracing part of an impulse without breaking its structure. From a confirmed-swing zigzag, it measures every completed counter-leg against the leg it retraces — depth, speed, bar overlap, body size and travel efficiency — and labels it corrective only when all five pass. A live zone follows the developing correction with running depth and invalidation.

How to Trade the Corrective Leg?

  • Corrective label: a confirmed leg tagged Shallow, Typical or Deep by retracement depth — the pullback entry window within trend structure.
  • Depth health: a correction held under 38.2% speaks for the trend; crossing 61.8% fires the Deep Correction alert — sponsorship fading.
  • Trend resumption: price retaking the retraced leg's extreme terminates the correction and fires the resumption alert.
  • Invalidation level: the dotted line at the retraced leg's origin; trading through it stands setups down.

Corrective Leg Settings

  • Swing Length (default 10): bars either side confirming the zigzag's swings.
  • Min Retracement % (default 0) and Max Retracement % (default 100): bounds on the share of the retraced leg given back.
  • Max Speed Ratio (default 1.0): per-bar travel cap versus the retraced leg.
  • Min Bar Overlap % (default 50): minimum average candle-range overlap.
  • Max Body Size Ratio (default 1.0): average body cap versus the retraced leg.
  • Max Travel Efficiency % (default 50): net versus summed close travel; one-way moves fail.
  • Shallow Below % (default 38.2) and Deep Above % (default 61.8): the health boundaries.
  • Events Require Close Beyond Level (default off): requires closes, not intrabar touches.
  • Display options cover leg labels, the active zone, the invalidation level, a faint swing framework, and a dashboard.

Frequently Asked Questions

What separates a corrective leg from an impulse leg?

Anatomy, not direction. An impulse leg travels efficiently with large bodies and little overlap; a correction advances little per bar, keeps its candles overlapping and wanders — exactly the measurements this build scores.

Why does the tracked correction ignore a completed corrective leg?

A corrective leg is part of the ongoing correction, not a fresh reference: the episode keeps measuring against the retraced impulse until its extreme is retaken or its origin gives way.

Which retracement bounds should I set?

The defaults accept any partial retrace inside the retraced leg. Raising Min Retracement % (23.6 and 38.2 are common floors) skips shallow stalls; beyond the origin the move stops being corrective.

Original indicatorBuilt in-house by LuxAlgo

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