As we discussed earlier, finding impulse and correction signals in chart was a preliminary step to predict the price flow.
Once we came to know how to identify it. Spontaneously, we have a question
How to identify Impulse and corrective structure in a particular trend and how to place a trade?
A trade was decided by lot of external and internal factors. Every trade has its own uniqueness and behaviour.
In the above examples,
Example:1
The signals starts in bearish trend and a impulse forms against the trend flow. which forms A wave and tend correction which forms B wave or trend continuation pattern. we buy at breakout and set the stop loss behind the B wave or flag pattern.
Example:2 In that, we have bearish trend which forms A wave and then corrective structure follows the previous pattern. we could sell that at breakout for wave c and set the stop loss behind the B wave.
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I hope these live chart examples will help you to understand more.
Here, a impulse forms against the trend flow and tends corrective structure.which changes the trend flow.
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But, here its a different scenario the bearish trend forms A wave and the corrective structure follows the previous trend pattern.