Wave-Trader

Basic difference between IMPULSE and CORRECTION

FX:EURUSD   Euro Fx/U.S. Dollar
Please look at the chart for further information:

These are my thoughts on Impulse and correction You may differ from that.
Comment: Here is the best example for impulse and correction.

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thank you
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My Pleasure mate.
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Thanks mate
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arshadd MorhafMo
Good
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My pleasure mate
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hi
could you give a specific example of which pair currently falls under this impulse and correction candles?
Does candle of equal size means there are adequate balance of buyers and sellers pushing up and down the price whereas if the candles are much longer, that means more buyers are pushing the price up?
should there be an average pip size to take into consideration else visually seeing the candles can be quite misleading, no ?
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There is no specific size of candles mate. It depends on you how do you identify the impulsive candles and corrective candles. You will be used to it by doing more practice. I can give you a tip you can use your indicators to identify the impulse. Normally impulse comes when you have strong divergence on your indicators.
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I hope this will help you mate. let me know if you are still confused mate.
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TheSmartInvestor Wave-Trader
Good example!!
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Wave-Trader PRO TheSmartInvestor
Thanks for your feedback.
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Imran bhai did you enter the nzd cad??
If yes please let us know, how you considered that breakout
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Arshad we use two types of entries on these kind of patterns mate you need to look at my educational post. Look at that how we trade on trend continuation patterns and where we can get into the market and where we can place our stop loss. Look at my educational post named trend continuation patterns.
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arshadd Wave-Trader
Jazakallah bro Imran
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Thanks mate.
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arshadd Wave-Trader
Waiting for you vedios as well on YouTube..
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arshadd arshadd
Respected bro , I have learnt a lot by your videos...
Hoping more videos specially application on of MACD counting waves...
Hope so
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I will try my best mate.
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I will post very soon mate.
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arshadd Wave-Trader
Thnks may Allah bless you
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My pleasure mate.
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senejani.ali PRO Wave-Trader
Thanks mate. Where to get your educational post? Is it on YouTube?
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Sir, your analysis method and the analysis methods of anilmangal is similar. Is your colleagues?
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waterman Litrader
I am the teacher of both. (lol)
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If you are expert of both then You are really an amazing man my friend.
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waterman Wave-Trader
Thank you mate for not cutting me into pieces !
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My pleasure mae no worry at all.
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nice edu post
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Thanks for that mate.
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Thank you very much
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My pleasure mate
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FX7606 Wave-Trader
How would you describe differences between a 'correction' and a 'consolidation?' Curious to know your thoughts. You have great charts and wonderful insights. Appreciate your posts!
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Both are same there is no much difference mate.
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FX7606 Wave-Trader
Thank you for your fast reply! You do great analysis.
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My pleasure mate and thank you very much for your feedback.
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Nice explanation man. You keep it simple.
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Ya more stuff on chart mean more stress on mind thanks for your feedback mate.
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Wow... Wave-Trader. Thanks for sharing this. As always, your educational posts are very helpful. I learn a lot from you.
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My pleasure mate and thank you very much for your feedback.
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"Impulse moves always happen off a leg-start first touch".
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I did not get your point mate please would you explain it in the chart or anything like that.
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pip_train PRO Wave-Trader
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I'm fairly new to tradingview, and can't figure out how to insert a picture version of the chart above.

Here's some knowledge that very few professionals that I've met seemed to understand. I'm only posting this to help other traders find their way. If there is such a thing as a holy grail, this is pretty much the closest I've found. I know this is probably going to leave you with more questions, and I will try to help if there is enough interest. This is knowledge that has taken me a long time to learn, so I'd rather not waste my time on deaf ears.

The chart on the left is the weekly chart. I picked an example to explain what a leg is. Pretty simple, and straightforward for most people I imagine. On the right is a 240min chart. What is less straightforward is that when a leg start forms (a new swing high/lo) a new leg is created.


Now you may be asking what is accumulation? Accumulation is the process of slowing momentum from a downward move. Price accumulates to a leg start. Why do we get such a big "impulse" as you worded it off a leg start? Simple. During the accumulation or distribution process, price tests support and resistance levels clearing the way through them on the next test.

This chart is just to show you the big picture of how we break down levels, as we begin to test the leg start which was formed on 4/13/2015.

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So we know where the leg start is in this example, let's zoom in on what's happening as we approach it:
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Many people would call the accumulation process "consolidation" followed by an "impulse" move or whatever. None of that explains why this is happening. I could get really deep into the market maker process as to why this happens, but for simplicity sake, it allows a market to be created etc. Anyways, consolidation does not happen because the market is trying to decide. That's just ignorant. Consolidation happens because a significant level of support/resistance is approaching, and momentum generated from higher time frame trends must be first offset.
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In the chart above, I illustrated how price lost support levels, and came back to test them as price approached the leg start established back in April 2015. The move is setup for an 'impulse' as you put it, because there are no significant resistance levels above left to test in the immediate area. Also, realize that markets are setup for these moves, and new events are used to propel them out of the consolidation areas people speak of, but don't understand. After you really start to understand this, you will realize how non-random the market really is, and you won't care about news releases, because you will already know what's going to happen. I was long during this ECB release, not because I knew anything about what would be released, but because I could read the chart, and understand that price was about to test a significant leg start, and would get a huge pop from it.

I hope this helps with understanding how price action works. It's not my intention to be rude. Using words like 'impulse' is fine, but it does nothing to help a trader really understand why something is happening. As a matter of fact, there's a lot of words traders use to explain something visually, but very, very, very few seem to understand why things happen via technical analysis.
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pip_train PRO pip_train
Again, impulse moves happen because they've been setup to happen via no significant untested support/resistance levels above or below them. They usually happen on 2nd touch as well.
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You explained it very well man thanks for that. we call them trend reversal or trend continuation pattern which you call accumulation zone and you will likely see big swing. we know those pattern already how they form and when they form how they behave and where they go so if you go and look at my EURUSD ideas mate you will understand much better what i mean by patterns and impulse and correction. impulse do not form any pattern only correction always form patterns we identify them and trade on the market for next impulse. It is really easy and we see same patterns again and again and everyday man.
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pip_train PRO Wave-Trader
Yes, impulse is not a pattern...it's usually a test of a leg start or significant S/R level during accumulation or distribution. Accumulation/distribution always happen around significant levels. You are seeing the same thing, but explaining it in a little less depth. I will go back through your other charts and add depth if I see anything that sticks out that isn't explained well. Thanks.
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Thank you for shareing your knowledge with us
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My pleasure mate.
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thanks very good tutorial mate...
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Wave-Trader PRO marketplaceguy
My pleasure mate.
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Wave-Trader PRO Alexander_Nikitin
Please would you show me your sense?
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TRADE2020 PRO Wave-Trader
your replies show your humbleness; i think thats what makes you big....
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HICHAM40 TRADE2020
merci
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Thanks for your feedback and support mate.
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I have to admit, I followed you - then unfollowed (because I was busy and not actively trading and was prioritising other stuff). But having seen these kind of charts where you explain and teach, I have followed again! Brilliant, appreciate it and thankful for your training and guidance. Very helpful for someone new like me!

I know you probably don't do this for Follows and Likes, or whatever ...but, figured I'd drop a note to show that these kinda things go a long way to help the community!

Thanks :)
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My pleasure mate and thanks for following me again and i will try my best to do more mate.
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That is impressive, I learn a lot from your educational post, God bless you.
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Thanks mate.
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How we can defined a entry point?
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Look at my educational post.
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Thank you for your post bro. Very good. I use impulse and correction only in trading and I use flag breakout as confirmation of entry points.
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Wave-Trader PRO senejani.ali
correct you are right man.
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thanks is very small world in front of u sir g,great educational stuff as always
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My pleasure seerat.
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Thank you
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My pleasure.
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thank
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Wave-Trader PRO KhunHunSein
cheers.
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shaandar,zabardast,zindabad
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I think you understand the point now mate.
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sonu81 Wave-Trader
yes sir g thx
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Thanks guru
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Pretty mate.
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