Basically, such a setup consists of three simple components.
1. the impulse. A strong move that is different from previous moves.
2. the correction of the movement.
3. the continuation. Breakout from the corrective movement in the direction of the impulse.
Ideally, the continuation is followed by a pullback. This offers excellent entry opportunities.
However, such a setup is by no way the "holy grail". Nevertheless, every trader should know the standard setups.
Happy Weekend everybody!