Wave-Trader

Basic difference between IMPULSE and CORRECTION

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

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

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GoldHunter
2 months ago
thank you
+1 Reply
Wave-Trader TOP GoldHunter
2 months ago
My Pleasure mate.
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MorhafMo
2 months ago
Thanks mate
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arshadd MorhafMo
2 months ago
Good
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Wave-Trader TOP MorhafMo
2 months ago
My pleasure mate
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dchua1969
2 months ago
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 ?
+1 Reply
Wave-Trader TOP dchua1969
2 months ago
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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Wave-Trader TOP dchua1969
2 months ago
I hope this will help you mate. let me know if you are still confused mate.
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TheSmartInvestor Wave-Trader
2 months ago
Good example!!
+1 Reply
Wave-Trader TOP TheSmartInvestor
2 months ago
Thanks for your feedback.
+1 Reply
arshadd
2 months ago
Imran bhai did you enter the nzd cad??
If yes please let us know, how you considered that breakout
+1 Reply
Wave-Trader TOP arshadd
2 months ago
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.
+2 Reply
arshadd Wave-Trader
2 months ago
Jazakallah bro Imran
+1 Reply
Wave-Trader TOP arshadd
2 months ago
Thanks mate.
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arshadd Wave-Trader
2 months ago
Waiting for you vedios as well on YouTube..
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arshadd arshadd
2 months ago
Respected bro , I have learnt a lot by your videos...
Hoping more videos specially application on of MACD counting waves...
Hope so
+1 Reply
Wave-Trader TOP arshadd
2 months ago
I will try my best mate.
+1 Reply
Wave-Trader TOP arshadd
2 months ago
I will post very soon mate.
+1 Reply
arshadd Wave-Trader
2 months ago
Thnks may Allah bless you
+1 Reply
Wave-Trader TOP arshadd
2 months ago
My pleasure mate.
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senejani.ali Wave-Trader
2 months ago
Thanks mate. Where to get your educational post? Is it on YouTube?
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Litrader
2 months ago
Sir, your analysis method and the analysis methods of anilmangal is similar. Is your colleagues?
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waterman Litrader
2 months ago
I am the teacher of both. (lol)
+1 Reply
Wave-Trader TOP waterman
2 months ago
If you are expert of both then You are really an amazing man my friend.
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waterman Wave-Trader
2 months ago
Thank you mate for not cutting me into pieces !
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Wave-Trader TOP waterman
2 months ago
My pleasure mae no worry at all.
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nick007
2 months ago
nice edu post
+1 Reply
Wave-Trader TOP nick007
2 months ago
Thanks for that mate.
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kazipintu
2 months ago
Thank you very much
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Wave-Trader TOP kazipintu
2 months ago
My pleasure mate
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FX7606 PRO Wave-Trader
2 months ago
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!
+1 Reply
Wave-Trader TOP FX7606
2 months ago
Both are same there is no much difference mate.
+1 Reply
FX7606 PRO Wave-Trader
2 months ago
Thank you for your fast reply! You do great analysis.
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Wave-Trader TOP FX7606
2 months ago
My pleasure mate and thank you very much for your feedback.
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Jim-FX
2 months ago
Nice explanation man. You keep it simple.
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Wave-Trader TOP Jim-FX
2 months ago
Ya more stuff on chart mean more stress on mind thanks for your feedback mate.
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fstrader1 PRO
2 months ago
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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Wave-Trader TOP fstrader1
2 months ago
My pleasure mate and thank you very much for your feedback.
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pip_train PRO
2 months ago
"Impulse moves always happen off a leg-start first touch".
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Wave-Trader TOP pip_train
2 months ago
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
2 months ago
snapshot


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.
,
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
2 months ago
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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Wave-Trader TOP pip_train
2 months ago
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.
+1 Reply
pip_train PRO Wave-Trader
2 months ago
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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pablo8
2 months ago
Thank you for shareing your knowledge with us
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Wave-Trader TOP pablo8
2 months ago
My pleasure mate.
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marketplaceguy
2 months ago
thanks very good tutorial mate...
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Wave-Trader TOP marketplaceguy
2 months ago
My pleasure mate.
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Wave-Trader TOP Alexander_Nikitin
2 months ago
Please would you show me your sense?
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TRADE2020 PRO Wave-Trader
2 months ago
your replies show your humbleness; i think thats what makes you big....
+2 Reply
HICHAM40 TRADE2020
2 months ago
merci
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Wave-Trader TOP TRADE2020
2 months ago
Thanks for your feedback and support mate.
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Kumail
2 months ago
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 :)
+1 Reply
Wave-Trader TOP Kumail
2 months ago
My pleasure mate and thanks for following me again and i will try my best to do more mate.
+1 Reply
customer
2 months ago
That is impressive, I learn a lot from your educational post, God bless you.
+1 Reply
Wave-Trader TOP customer
2 months ago
Thanks mate.
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Macan
2 months ago
How we can defined a entry point?
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Wave-Trader TOP Macan
2 months ago
Look at my educational post.
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senejani.ali
2 months ago
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 TOP senejani.ali
2 months ago
correct you are right man.
+1 Reply
seerat
2 months ago
thanks is very small world in front of u sir g,great educational stuff as always
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Wave-Trader TOP seerat
2 months ago
My pleasure seerat.
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hanihamdan PRO
2 months ago
Thank you
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Wave-Trader TOP hanihamdan
2 months ago
My pleasure.
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KhunHunSein
2 months ago
thank
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Wave-Trader TOP KhunHunSein
2 months ago
cheers.
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sonu81
2 months ago
shaandar,zabardast,zindabad
+1 Reply
Wave-Trader TOP sonu81
2 months ago
I think you understand the point now mate.
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sonu81 Wave-Trader
2 months ago
yes sir g thx
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immawin
2 months ago
Thanks guru
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renethomas03
a month ago
Pretty mate.
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