In this educational video, I will go over what an impulse and a correction is in the market. I will point out how to distinguish them in different time frames, and give a few examples on them as well.
The market can only be in two phrases. Either its in an impulsive phrase, or a corrective phrase. It doesn't matter what market or the time frames you are looking at, there will always be impulses and corrections.
So, what is an impulse, and what is a correction?
Impulse - price is in the high momentum period, and it's moving very fast. Correction - price is consolidating, and moving sideway, or slowing ascending/descending sideway price action. Determine what is impulse, and what is correction will give you a better edge in the market. You don't want to get trapped in the consolidation within the corrections.
How can I utilize this to my analysis ? Multi-time frame analysis: From HTF, top down approach, Understand what HTF is doing and go down to LTF for confirmation and entries for the best R:R.