Strong impulse gives an indication of change in trend

 

                                        In the following chart, we can see that price formed a strong impulse at the top and started to fall but what we can see over there price started to struggle and went in to consolidation which is quite often once price start to reverse into other direction and repeat this price pattern again and again. Identification of this impulse on time creates opportunity for trade setup and in case if you miss the entry you can wait for the trend continuation pattern for next trade setup. Which can be seen in the following example.

In the following chart, price completed that trend continuation channel and broken down and completed the wave which was being expected.

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1 Comment

  1. Arshad

    awesome. easy to understand n to memorize the setup for next time.. jazakallah sir.

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