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.