The Market move in Impulsive waves and Corrective waves
Hello Traders,
This is the 2end part of the educationel series as promessed, i'll focuse on the general behavior of the market movement wich can be easly undresanded :
If you had to follow only one simple rule of price action, it would be to understand impulsive and corrective price action. They offer the most profit potential, communicate where the institutional players are buying and selling, whether they are buying or selling, and what the dominant trend is.
What is an Impulsive wave?
An impulsivewave is one whereby the market moves quite strongly or heavily in on direction, covering a great distance in a short period of time. These moves tell you when the imbalance between the buyers and sellers is really strong and there is heavy participation from the institutional side.
Logically, more money can be made during these impulsive waves, as they cover more points or pips in less time. They are generally more volatile, and thus provide us with great opportunities to get more R (reward) with less risk since the market will stretch more easily in one direction. But no matter what, we want to be trading with these moves as much as possible, not against them.
What is a corrective wave?
Market move against the trend of one greater degree only with a seeming struggle. between the two oppositely-trending degrees generally makes correctives waves less clearly identifiable than impulsive wave, which always flow with comparative ease in the direction of the one larger trend.
I will be happy to answer your question :)
Please like & Please comment.
See you soon.
This is the 2end part of the educationel series as promessed, i'll focuse on the general behavior of the market movement wich can be easly undresanded :
If you had to follow only one simple rule of price action, it would be to understand impulsive and corrective price action. They offer the most profit potential, communicate where the institutional players are buying and selling, whether they are buying or selling, and what the dominant trend is.
What is an Impulsive wave?
An impulsivewave is one whereby the market moves quite strongly or heavily in on direction, covering a great distance in a short period of time. These moves tell you when the imbalance between the buyers and sellers is really strong and there is heavy participation from the institutional side.
Logically, more money can be made during these impulsive waves, as they cover more points or pips in less time. They are generally more volatile, and thus provide us with great opportunities to get more R (reward) with less risk since the market will stretch more easily in one direction. But no matter what, we want to be trading with these moves as much as possible, not against them.
What is a corrective wave?
Market move against the trend of one greater degree only with a seeming struggle. between the two oppositely-trending degrees generally makes correctives waves less clearly identifiable than impulsive wave, which always flow with comparative ease in the direction of the one larger trend.
I will be happy to answer your question :)
Please like & Please comment.
See you soon.
But we are prepared for both scenario