📚 Understanding Price Action - Impulsive & Corrective Moves 📚For every currency pair, all the price action can be broken down into 2 different waves. Impulse waves and corrective waves.
Both of these waves have the same patterns within them such as flags, ascending/descending corrections, channels etc.
The tip to finding out what phase we're in is to zoom out to a bigger timeframe and look at price action as a whole and ask yourself "is this impulsive or is this corrective". Once you understand that, you can more often than not understand where price will be going next.
For CADJPY, we are in a flat ABC triangle and we are approaching the upper limits of the triangle. We also are in an ABC correction. On the smaller timeframe, if things line up, we can get in at the very top of the impulse and ride this back down!
Try spotting corrections and impulses and watch how your chart game levels up!
Impulse
AUDUSD Look for Continuation Sell
Hello traders:
Also on my watchlist is AUDUSD which has good bearish price action in the making.
From the HTF rising wedge, price broke out follow by continuation correction.
Then the latest price formed a deeper pullback, but a Head and Shoulder pattern was formed within the flag/channel correction. Good indication we can get another bearish run.
Similar like AUDCAD, I would wait for a confirm breakout from the channel, and a LTF continuation correction to get in on the sell.
thank you
EURUSD Sell Setup
Hi traders:
EURUSD is now forming an expanding structure that can lead into the next bearish impulse phase.
We see price has already broken out of the HTF correction, and has strong LTF impulse breakout.
The latest price action shows an expanding type of correction, and within in a LTF ascending channel, correcting the price up.
I would be patient here and wait for a strong LTF impulse breakout, follow by continuation c correction before entering a sell.
Thank you
Detail Breakdown on GOLD Mid-Long Term OutlookHello traders:
Today I breakdown GOLD's current price action, and I discuss the potential possibility on the mid to long term outlook.
There could be different possible scenarios from the price, so its a good practice to have a solid trading plan and management.
Mid term wise I prefer to see price makes one more move to the downside, breaking previous lows and hit the bottom for the HTF flag/channel structure before reversing.
Alternatively we can also expect price to consolidate here and form a LTF impulse to breakout of the LTF flag/channel as well.
In both cases, long term outlook is certainly bullish if we get a completion of the LTF flag/channel that will have high probability to lead into next bullish impulse run.
Any questions, comments or feedback welcome to let me know.
Thank you
Jojo
Ripple correction finish for the next up move
Hi everyone:
Ripple has completed its correctional phase, and is shaping up for another buy opportunity.
We can see price formed a larger continuation correction after a strong impulse phrase to the upside.
An Inverse Head and Shoulder pattern formed, and a confirmation breakout from the larger structure.
I would pay close attention now for this right shoulder to form into a continuation correction and look for the previous highs as a potential target.
Thank you
📚 Impulsive & Corrective Breaks - How To Identify & Trade Them 📚What is an Impulse?
An impulse is defined as a strong move whereby the market moves quite strongly or heavily in one direction, covering a great distance in a short period of time.
Typically, when there's a trend reversal occurring, we require an impulse in the opposite direction of the trend, indicating to us that there's a possible trend reversal. The question we face now is "What does an impulse need to look like for there to be a trend reversal?". Throughout my years in trading, I've found that if a significant level is broken during the impulse, we can expect a follow through of that impulse after a brief correction or a retest.
In the Impulse diagrams, you can see that I've marked out a recent significant level where price reacted. When there was an impulse, I kept an eye on the level to see if it breaks. If it did not break, I can assume that the impulse wasn't strong enough to create a trend reversal and it is merely a bigger more aggressive correction.
However, if the level did break along with the trendline, we can assume that there is a trend reversal taking place and we should keep our focus on the key level and price action for corrections such as flags, pennants , channels etc.
Please see chart updates for examples of Impulsive Breaks and how to trade them.
What is a Correction?
A correction is defined as a relatively short-term movement of the market in the direction opposite to the main trend.
To identify whether a break of a trendline is an impulsive break of corrective break, we must also identify the key level by looking at a significant level where price reacts. If the impulse that breaks the trendline does NOT break the level, we can assume that the trend isn't ready to reverse yet and it is a corrective break. Often a corrective break ends up with an impulse breaking the significant level, at which time we can look for a correction to take our trade.
See chart updates below for examples of corrective breaks and how to trade them.
Please leave a like and comment what you think!
As always, Goodluck and trade safe!
Mr Wick.
📚 Impulsive & Corrective Breaks - How To Identify & Trade Them 📚What is an Impulse?
An impulse is defined as a strong move whereby the market moves quite strongly or heavily in one direction, covering a great distance in a short period of time.
Typically, when there's a trend reversal occurring, we require an impulse in the opposite direction of the trend, indicating to us that there's a possible trend reversal. The question we face now is "What does an impulse need to look like for there to be a trend reversal?". Throughout my years in trading, I've found that if a significant level is broken during the impulse, we can expect a follow through of that impulse after a brief correction or a retest.
In the Impulse diagrams, you can see that I've marked out a recent significant level where price reacted. When there was an impulse, I kept an eye on the level to see if it breaks. If it did not break , I can assume that the impulse wasn't strong enough to create a trend reversal and it is merely a bigger more aggressive correction.
However, if the level did break along with the trendline, we can assume that there is a trend reversal taking place and we should keep our focus on the key level and price action for corrections such as flags, pennants, channels etc.
Please see chart updates for examples of Impulsive Breaks and how to trade them.
What is a Correction?
A correction is defined as a relatively short-term movement of the market in the direction opposite to the main trend.
To identify whether a break of a trendline is an impulsive break of corrective break, we must also identify the key level by looking at a significant level where price reacts. If the impulse that breaks the trendline does NOT break the level, we can assume that the trend isn't ready to reverse yet and it is a corrective break. Often a corrective break ends up with an impulse breaking the significant level, at which time we can look for a correction to take our trade.
See chart updates below for examples of corrective breaks and how to trade them.
Please leave a like and comment what you think!
As always, Goodluck and trade safe!
Mr Wick.
OIL higher time frame outlook (Multi-time frame analysis)
Hello everyone:
Doing a quick bearish outlook on oil.
I like the price had a strong reversal bearish price action from the top of the HTF double tops area, and could lead into further continuation on the LTF
I will be patiently waiting for price to develop into the price action I want to see before executing any trades.
Thank you
Jojo
EURGBP Bullish Reversal Price Action
Hello traders:
Looking at EURGBP's price action for the buy opportunities.
We can see price had a HTF descending channel, correcting the price.
WE further see a smaller LTF decending channel and a strong bullihs impulse breaking up.
This is a good indication we are going to see the next bullish run on the HTF.
Price broke out now, so best to wait for LTF correction to get in.
Thank you
GBPCHF Watch for this bearish reversal
Hello traders:
GBPs lately have been bearish across the board, and certainly is looking so on GBPCHF.
We can see price action formed an ascending channel/wedge structure, correcting the price to the previous swing high.
This is a good indication the bullish momentum is exhausted, and we can expect a reversal price action.
We then see a sharp bearish impulse down, breaking out of the correction. Good sign or further bearish continuation down.
Wait for LTF continuation correction here to get in on the bearish run.
Thank you
AUDCAD Continuation Sell (Multi-Time Frame Analysis)
Hello everyone:
Looking at AUDCAD for continuation sell opportunities.
WE can see price had a bearish impulse phrase on the HTF, after breaking out from the rising wedge, and is now forming consolidation which can lead into the next down move.
I would be waiting for a confirmed breakout from the continuation correction, and any LTF correction to get in on the sell
thank you
P.S. If you enjoy a video analysis breakdown moving forward, please let me know :) thx
Jojo
How to Trade Price Action Daily!Hello Fellow Traders, Here is a Educational Video (How to Trade Impulse/Correction/Impulse) .
Key things to Remember:
When Trading This Type Of method - You Should Always have an Open mind when it comes to "Where the Market will Finish The correction"
The Strongest Levels of Fibonacci is the 61.8 & 38.2 (These Are Generally the levels that the Market Loves to Finish its correction)
The Best way to follow This Method is if the following conditions apply.
Conditions -
1. Look & Find a Big Impulse On bigger Timeframes (Weekly, Daily or 4Hours)
2. Wait for The Market to Finish its Impulse (You will notice the market starts to move the opposite direction to the original Impulse)
3. Pull Your Fibonacci From The Start Of the Impulse to the End of the Impulse Aka ( From high to low = Sell OR Low to High= Buy)
4. Be Patient and wait for the Market to Reach the Aka Strong Levels (61.8 Or 32.8) OR Which Ever is Better Align With Good Structure!
5. Once you Have a smaller Timeframe break of structure or Momentum Change (You will look for an Entry Based on Market Environment + Structure)
6. Enter Your Trade Preferably of 1hOur Or 4hour Timeframe (whichever has given confirmation mentioned in point 4)
7. Always Use Risk Management / 1% Risk to Trade Entries using this Method
8. Patience is the Key to Success!
Let Me know if you have any Questions or Comments Below!
Your Support Is Appreciated!
Happy Trading & Goodluck!
See You in the Next Educational Video!
Global Fx Education
JPY Bearish Outlook (GJ, AJ, NJ, CJ)
Hello traders:
Similar like the USD outlook, I have made a quick video breaking down some of the JPY pairs I am looking at.
Same trading plan and risk management approach like the USDs, I would wait and see the bearish development first before enter any positions.
So watch out for some LTF development on some of these pairs in the up coming days.
Thank you
USD Outlook (GU, EU, AU. NU)Hello everyone:
Welcome back to a quick updates on the USD.
In this quick video I breakdown 4 USD pairs that are shaping up to for a good sell potential on them.
All of them will need a bit more development to give me the positive confluence to enter the trades, so patient is key here.
IF the price doesn't develop into what I like to see, then no entry for me. :)
EURUSD
s3.tradingview.com
GBPUSD
s3.tradingview.com
AUDUSD
s3.tradingview.com
NZDUSD
s3.tradingview.com
Any questions, comments or feedback welcome to let me know :)
Thank you
BNBUSD Dont Miss the next buy
Hello everyone:
BInance Coin has strong bullish price action that can lead to the next impulse phase to the upside.
We can see price already made a strong impulse move up from the previous HTF continuation correction, which I was able to get in and secure good profits from.
The latest correction in the making is another sign from the market that its consolidating and ready for the next move.
I would wait for the correction to complete and look for LTF entries once it shows confirmation breakouts and correction to go.
thank you.
Weekly Trading Recap: GBPCHF, EURUSD Apr 24 2021Hello everyone:
Welcome back to this week’s trading recap video. Let's take a look at the positions that closed down this week.
I will explain my approach on the entry, SL, TP and management.
GBPCHF - Running 2% profit
Full analysis/forecast:
EURUSD 0 Closed for BE
Full analysis/forecast:
Any questions, comments or feedback please let me know. :)
Thank you
Jojo
NASDAQ Watch for sell entries
Hello traders:
Looking as NASDAQ for the bearish opportunities to the downside.
We can see there's a HTF double tops, price moved up correctively within an ascending channel.
Latest price action formed a Head and Shoulder and broke out of the ascending channel, good sign of bearish reversal.
Look for further LTF continuation corrections to get in on the bearish move down.
Thank you
GBPJPY Look for continuation sell
Hello traders:
Most JPY pairs are also showing some bearish price action and GBPJPY looks the cleanest for me.
We see the previous sell setup from the top of a double tops, "M" style pattern, and then price falls into an expanding correction.
WE can start to see a HTF Head and Shoulder as well.
As we know expanding type of correction can be more advance, so I am patently waiting for further confirmation form the price.
Preferably we get a LTF continuation correction within the expanding structure and that can lead into the next bearish impulse phrase from the market.
Alternatively, if price just breaks out of the expanding structure and as usual look for continuation correction after.
Thank you
SPX Is It Ready for the drop ?
Hello everyone:
Also looking at most of the US indices, and SPX500 is looking very clean for a strong bearish reversal from the top.
We can see price has been in this larger, HTF correction phrase, continue to correct the price up.
As we can see from the latest price, LTF ascending channel at the top of the overall price action is a good indication for the bearish reversal.
Now that price has broken out of the ascending channel, wait for confirmation of a LTF continuation correction would be best to enter a sell.
Thank you
a Tip about reading VolumeHow to read volume in your stock:
General concept:
- You want to see volume increase on impulses and volume decrease on corrections
Volume analysis:
A:
Price is moving up, volume is increasing - as should be.
B:
Price is correcting, volume is decreasing - as should be.
C:
Price is moving up, volume is increasing - as should be, BUT the large volume is not pushing forward and the price is starting to correct - Red flag.
D:
Price is correcting, volume is decreasing - as should be.
E:
Price is keeping correcting further, volume is increasing on deep correction after breaking local low!!! (not as should be) + HUGE amount of volume greater than volume peaks 1 and 2 =====>>>> we are about to go into a large correction!
Large correction = deep or lengthy... but it doesn't tell you which one... maybe both, it is just telling you correction about to happen...
F:
Large correction is happening, volume is decreasing.
EXTRA ANALYSIS:
Remember that the market is fractal, so this pattern repeats itself on different structures.
- From point A to E you have an impulse on increasing volume. From point E to F you have a correction on decreasing volume (Bigger time frame).
- From point A to 1 to B there is an impulse and correction volume pattern, as stated above on the lower time frame:
A is an impulse with increasing volume
1 is like point E - volume on the RED day is greater than the Green day or any previous days on the rise.
B is a correction on decreasing volume
The whole concept of volume analysis is to help the trader be more in tune with the market cycle... So you will know when you are in a correction, and when you are in impulse.
Knowing this will help you HOLD ON, when you need to, or TAKE PROFIT when you have signs that correction is happening.
If you like it, follow and like this idea so it will save on your saved ideas for future reference.
Elliott Wave: a potential Wave 3 or Wave C in TeslaThe price of Tesla ( NASDAQ:TSLA ) had been going down in a 5 waves manner, which was followed by a double zigzag correction,
implying the next possible move will be another 5 waves decline
The only 2 possible patterns which can be formed in 5-3-5 are either an impulse (5-3-5-3-5) or a zigzag (5-3-5)
Therefore we can set two targets for this trade (or just separate as 2 trades)
For the first one, assuming we enter a short at $713, the stop loss will be $780.72 (above the end of wave b), the take profit will be $467.96 (assuming wave c = wave a), which give us a 1:3.6 risk/reward ratio
For the second one, the take profit will be $341.07 (assuming wave c = 1.618 x wave a), which give us a 1:5.4 risk/reward ratio
P.S. my analysis was done in log scale